Correlation Between United Rentals and Asure Software

Can any of the company-specific risk be diversified away by investing in both United Rentals and Asure Software 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 Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between United Rentals and Asure Software, you can compare the effects of market volatilities on United Rentals and Asure Software 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 Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Asure Software.

Diversification Opportunities for United Rentals and Asure Software

0.22

Correlation Coefficient

United Rentals  Asure Software

Modest diversification

The 3 months correlation between United and Asure is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software 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 Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of United Rentals i.e., United Rentals and Asure Software go up and down completely randomly.

Pair Corralation between United Rentals and Asure Software

Considering the 90-day investment horizon United Rentals is expected to generate 0.69 times more return on investment than Asure Software. However, United Rentals is 1.46 times less risky than Asure Software. It trades about 0.25 of its potential returns per unit of risk. Asure Software is currently generating about -0.07 per unit of risk. If you would invest  65,013  in United Rentals on May 7, 2025 and sell it today you would earn a total of  21,844  from holding United Rentals or generate 33.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

United Rentals  vs.  Asure Software

United Rentals

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in United Rentals are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, United Rentals demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Asure Software

Risk-Adjusted Performance

Weakest

Over the last 90 days Asure Software has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with United Rentals and Asure Software

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

The idea behind United Rentals and Asure Software 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.