United Stock Volatility


USD 356.57  0.15  0.0421%   

United Rentals appears to be very steady, given 3 months investment horizon. United Rentals owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.13, which indicates the firm had 0.13% of return per unit of risk over the last 3 months. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for United Rentals, which you can use to evaluate the future volatility of the company. Please review United Rentals' Coefficient Of Variation of 763.59, risk adjusted performance of 0.1974, and Semi Deviation of 2.2 to confirm if our risk estimates are consistent with your expectations.
United Rentals Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of United daily returns, and it is calculated using variance and standard deviation. We also use United's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of United Rentals volatility.

60 Days Market Risk

Very steady

Chance of Distress

60 Days Economic Sensitivity

Responds to the market

ESG Sustainability

While most ESG disclosures are voluntary, United Rentals' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to United Rentals' managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as United Rentals can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of United Rentals at lower prices. For example, an investor can purchase United stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of United Rentals' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with United Rentals

+0.92AERAerCap Holdings NVPairCorr
+0.85ALAir LeasePairCorr
+0.78CARAvis Budget GroupPairCorr
+0.97HEESHE Equipment ServicesPairCorr

United Rentals Market Sensitivity And Downside Risk

United Rentals' beta coefficient measures the volatility of United stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents United stock's returns against your selected market. In other words, United Rentals's beta of 1.51 provides an investor with an approximation of how much risk United Rentals stock can potentially add to one of your existing portfolios.
United Rentals currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.18. However, we advise investors to further question United Rentals expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure United Rentals' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact United Rentals' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze United Rentals Demand Trend
Check current 90 days United Rentals correlation with market (NYSE Composite)

United Beta

United standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

It is essential to understand the difference between upside risk (as represented by United Rentals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of United Rentals' daily returns or price. Since the actual investment returns on holding a position in united stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in United Rentals.

Using United Put Option to Manage Risk

Put options written on United Rentals grant holders of the option the right to sell a specified amount of United Rentals at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of United Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge United Rentals' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding United Rentals will be realized, the loss incurred will be offset by the profits made with the option trade.

United Rentals' PUT expiring on 2022-12-09

       United Rentals Price At Expiration  

Current United Rentals Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
2022-12-09 PUT at $370.0-0.8150.018812022-12-0913.8 - 15.616.1View
2022-12-09 PUT at $367.5-0.77390.021912022-12-0911.9 - 13.216.2View
2022-12-09 PUT at $365.0-0.71260.024332022-12-0910.2 - 11.315.3View
2022-12-09 PUT at $362.5-0.65070.0264472022-12-098.5 - 9.510.66View
2022-12-09 PUT at $360.0-0.58380.0279202022-12-097.0 - 7.89.6View
2022-12-09 PUT at $357.5-0.51330.028182022-12-095.8 - 6.36.7View
2022-12-09 PUT at $355.0-0.44420.027162022-12-094.6 - 5.15.0View
2022-12-09 PUT at $352.5-0.37680.026142022-12-093.6 - 4.23.5View
2022-12-09 PUT at $350.0-0.31260.0243132022-12-092.8 - 3.33.0View
2022-12-09 PUT at $347.5-0.25720.0217112022-12-092.2 - 2.52.95View
2022-12-09 PUT at $345.0-0.21130.0189152022-12-091.65 - 2.11.55View
View All United Rentals Options

United Rentals Stock Volatility Analysis

Volatility refers to the frequency at which United Rentals stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with United Rentals' price changes. Investors will then calculate the volatility of United Rentals' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of United Rentals' volatility:

Historical Volatility

This type of stock volatility measures United Rentals' fluctuations based on previous trends. It's commonly used to predict United Rentals' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for United Rentals' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on United Rentals' to be redeemed at a future date.
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of United Rentals price series.

United Rentals Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.5069 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, United Rentals will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to United Rentals or Trading Companies & Distributors sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that United Rentals' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a United stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.1796, implying that it can generate a 0.18 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
United Rentals' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how united stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an United Rentals Price Volatility?

Several factors can influence a Stock's stock volatility:


Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

United Rentals Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to United Rentals or Trading Companies & Distributors sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that United Rentals' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a United stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 90-day investment horizon the coefficient of variation of United Rentals is 750.87. The daily returns are distributed with a variance of 6.71 and standard deviation of 2.59. The mean deviation of United Rentals is currently at 2.05. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.48
Alpha over NYSE Composite
Beta against NYSE Composite1.51
Overall volatility
Information ratio 0.09

United Rentals Stock Return Volatility

United Rentals historical daily return volatility represents how much of United Rentals stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 2.5909% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 12.6051% volatility on return distribution over the 90 days horizon.
 Performance (%) 

About United Rentals Volatility

Volatility is a rate at which the price of United Rentals or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of United Rentals may increase or decrease. In other words, similar to United's beta indicator, it measures the risk of United Rentals and helps estimate the fluctuations that may happen in a short period of time. So if prices of United Rentals fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2022
Market CapitalizationB8.6 B

United Rentals Investment Opportunity

NYSE Composite has a standard deviation of returns of 12.61 and is 4.87 times more volatile than United Rentals. 22  of all equities and portfolios are less risky than United Rentals. Compared to the overall equity markets, volatility of historical daily returns of United Rentals is lower than 22 () of all global equities and portfolios over the last 90 days. Use United Rentals to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal upward fluctuation. Check odds of United Rentals to be traded at $374.4 in 90 days.

Very poor diversification

The correlation between United Rentals and NYA is 0.87 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and NYA in the same portfolio, assuming nothing else is changed.

United Rentals Additional Risk Indicators

The analysis of United Rentals' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in United Rentals' investment and either accepting that risk or mitigating it. Along with some common measures of United Rentals stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

United Rentals Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against United Rentals as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. United Rentals' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, United Rentals' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to United Rentals.
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Complementary Tools for analysis

When running United Rentals price analysis, check to measure United Rentals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy United Rentals is operating at the current time. Most of United Rentals' value examination focuses on studying past and present price action to predict the probability of United Rentals' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move United Rentals' price. Additionally, you may evaluate how the addition of United Rentals to your portfolios can decrease your overall portfolio volatility.
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Is United Rentals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of United Rentals. If investors know United will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about United Rentals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
Market Capitalization
24.7 B
Quarterly Revenue Growth YOY
Return On Assets
Return On Equity
The market value of United Rentals is measured differently than its book value, which is the value of United that is recorded on the company's balance sheet. Investors also form their own opinion of United Rentals' value that differs from its market value or its book value, called intrinsic value, which is United Rentals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because United Rentals' market value can be influenced by many factors that don't directly affect United Rentals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between United Rentals' value and its price as these two are different measures arrived at by different means. Investors typically determine United Rentals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, United Rentals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.