Correlation Between Avis Budget and HyreCar
Can any of the company-specific risk be diversified away by investing in both Avis Budget and HyreCar 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 Avis Budget and HyreCar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avis Budget Group and HyreCar, you can compare the effects of market volatilities on Avis Budget and HyreCar 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 Avis Budget with a short position of HyreCar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avis Budget and HyreCar.
Diversification Opportunities for Avis Budget and HyreCar
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avis and HyreCar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Avis Budget Group and HyreCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyreCar and Avis Budget 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 Avis Budget Group are associated (or correlated) with HyreCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyreCar has no effect on the direction of Avis Budget i.e., Avis Budget and HyreCar go up and down completely randomly.
Pair Corralation between Avis Budget and HyreCar
If you would invest 8,594 in Avis Budget Group on August 31, 2024 and sell it today you would earn a total of 2,290 from holding Avis Budget Group or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Avis Budget Group vs. HyreCar
Performance |
| Timeline |
| Avis Budget Group |
| HyreCar |
Avis Budget and HyreCar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avis Budget and HyreCar
The main advantage of trading using opposite Avis Budget and HyreCar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avis Budget position performs unexpectedly, HyreCar 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 HyreCar will offset losses from the drop in HyreCar's long position.| Avis Budget vs. Hertz Global Hldgs | Avis Budget vs. Ryder System | Avis Budget vs. HE Equipment Services | Avis Budget vs. United Rentals |
| HyreCar vs. Eldorado Gold Corp | HyreCar vs. East Africa Metals | HyreCar vs. Summit Materials | HyreCar vs. SFL Corporation |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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