Correlation Between United Rentals and Core Main
Can any of the company-specific risk be diversified away by investing in both United Rentals and Core Main at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining United Rentals and Core Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Core Main, you can compare the effects of market volatilities on United Rentals and Core Main and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in United Rentals with a short position of Core Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Core Main.
Diversification Opportunities for United Rentals and Core Main
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Core is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Core Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Main and United Rentals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on United Rentals are associated (or correlated) with Core Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Main has no effect on the direction of United Rentals i.e., United Rentals and Core Main go up and down completely randomly.
Pair Corralation between United Rentals and Core Main
Considering the 90-day investment horizon United Rentals is expected to generate 0.56 times more return on investment than Core Main. However, United Rentals is 1.79 times less risky than Core Main. It trades about 0.18 of its potential returns per unit of risk. Core Main is currently generating about -0.06 per unit of risk. If you would invest 80,647 in United Rentals on July 18, 2025 and sell it today you would earn a total of 19,918 from holding United Rentals or generate 24.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. Core Main
Performance |
| Timeline |
| United Rentals |
| Core Main |
United Rentals and Core Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Core Main
The main advantage of trading using opposite United Rentals and Core Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Core Main can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Core Main will offset losses from the drop in Core Main's long position.| United Rentals vs. Avis Budget Group | United Rentals vs. Ryder System | United Rentals vs. U Haul Holding | United Rentals vs. Martin Marietta Materials |
| Core Main vs. Distribution Solutions Group | Core Main vs. Global Industrial Co | Core Main vs. Applied Industrial Technologies | Core Main vs. BlueLinx Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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