Correlation Between U Haul and Vulcan Materials

Can any of the company-specific risk be diversified away by investing in both U Haul and Vulcan Materials 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 U Haul and Vulcan Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between U Haul Holding and Vulcan Materials, you can compare the effects of market volatilities on U Haul and Vulcan Materials 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 U Haul with a short position of Vulcan Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Vulcan Materials.

Diversification Opportunities for U Haul and Vulcan Materials

-0.1

Correlation Coefficient

U Haul  Vulcan Materials

Good diversification

The 3 months correlation between UHAL and Vulcan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Vulcan Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Materials and U Haul 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 U Haul Holding are associated (or correlated) with Vulcan Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Materials has no effect on the direction of U Haul i.e., U Haul and Vulcan Materials go up and down completely randomly.

Pair Corralation between U Haul and Vulcan Materials

Given the investment horizon of 90 days U Haul Holding is expected to under-perform the Vulcan Materials. In addition to that, U Haul is 1.22 times more volatile than Vulcan Materials. It trades about -0.25 of its total potential returns per unit of risk. Vulcan Materials is currently generating about -0.22 per unit of volatility. If you would invest  30,470  in Vulcan Materials on August 4, 2025 and sell it today you would lose (1,520) from holding Vulcan Materials or give up 4.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

U Haul Holding  vs.  Vulcan Materials

U Haul Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, U Haul is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Vulcan Materials

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Materials are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, Vulcan Materials is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with U Haul and Vulcan Materials

The main advantage of trading using opposite U Haul and Vulcan Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, Vulcan Materials 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 Vulcan Materials will offset losses from the drop in Vulcan Materials' long position.

The idea behind U Haul Holding and Vulcan Materials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.