Correlation Between Herc Holdings and AULT Old
Can any of the company-specific risk be diversified away by investing in both Herc Holdings and AULT Old 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 Herc Holdings and AULT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herc Holdings and AULT Old, you can compare the effects of market volatilities on Herc Holdings and AULT Old 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 Herc Holdings with a short position of AULT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herc Holdings and AULT Old.
Diversification Opportunities for Herc Holdings and AULT Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Herc and AULT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Herc Holdings and AULT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AULT Old and Herc Holdings 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 Herc Holdings are associated (or correlated) with AULT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AULT Old has no effect on the direction of Herc Holdings i.e., Herc Holdings and AULT Old go up and down completely randomly.
Pair Corralation between Herc Holdings and AULT Old
If you would invest 18,842 in Herc Holdings on November 4, 2024 and sell it today you would earn a total of 1,554 from holding Herc Holdings or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Herc Holdings vs. AULT Old
Performance |
| Timeline |
| Herc Holdings |
| AULT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Herc Holdings and AULT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herc Holdings and AULT Old
The main advantage of trading using opposite Herc Holdings and AULT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herc Holdings position performs unexpectedly, AULT Old 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 AULT Old will offset losses from the drop in AULT Old's long position.| Herc Holdings vs. McGrath RentCorp | Herc Holdings vs. Alta Equipment Group | Herc Holdings vs. Custom Truck One | Herc Holdings vs. GATX Corporation |
| AULT Old vs. Ihuman Inc | AULT Old vs. Lianhua Supermarket Holdings | AULT Old vs. Willamette Valley Vineyards | AULT Old vs. BBB Foods |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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