Correlation Between FlexShopper and Hertz Global
Can any of the company-specific risk be diversified away by investing in both FlexShopper and Hertz Global 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 FlexShopper and Hertz Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and Hertz Global Holdings, you can compare the effects of market volatilities on FlexShopper and Hertz Global 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 FlexShopper with a short position of Hertz Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and Hertz Global.
Diversification Opportunities for FlexShopper and Hertz Global
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FlexShopper and Hertz is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper and Hertz Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hertz Global Holdings and FlexShopper 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 FlexShopper are associated (or correlated) with Hertz Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hertz Global Holdings has no effect on the direction of FlexShopper i.e., FlexShopper and Hertz Global go up and down completely randomly.
Pair Corralation between FlexShopper and Hertz Global
Given the investment horizon of 90 days FlexShopper is expected to generate 1.22 times more return on investment than Hertz Global. However, FlexShopper is 1.22 times more volatile than Hertz Global Holdings. It trades about 0.05 of its potential returns per unit of risk. Hertz Global Holdings is currently generating about -0.04 per unit of risk. If you would invest 103.00 in FlexShopper on August 30, 2024 and sell it today you would earn a total of 82.00 from holding FlexShopper or generate 79.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FlexShopper vs. Hertz Global Holdings
Performance |
| Timeline |
| FlexShopper |
| Hertz Global Holdings |
FlexShopper and Hertz Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and Hertz Global
The main advantage of trading using opposite FlexShopper and Hertz Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper position performs unexpectedly, Hertz Global 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 Hertz Global will offset losses from the drop in Hertz Global's long position.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| Hertz Global vs. United Rentals | Hertz Global vs. Ryder System | Hertz Global vs. Herc Holdings | Hertz Global vs. Hertz Global Hldgs |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |