Correlation Between Herc Holdings and SUNOCO
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By analyzing existing cross correlation between Herc Holdings and SUNOCO LOGISTICS PARTNERS, you can compare the effects of market volatilities on Herc Holdings and SUNOCO 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 SUNOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herc Holdings and SUNOCO.
Diversification Opportunities for Herc Holdings and SUNOCO
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Herc and SUNOCO is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Herc Holdings and SUNOCO LOGISTICS PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNOCO LOGISTICS PARTNERS 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 SUNOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNOCO LOGISTICS PARTNERS has no effect on the direction of Herc Holdings i.e., Herc Holdings and SUNOCO go up and down completely randomly.
Pair Corralation between Herc Holdings and SUNOCO
Considering the 90-day investment horizon Herc Holdings is expected to generate 4.58 times more return on investment than SUNOCO. However, Herc Holdings is 4.58 times more volatile than SUNOCO LOGISTICS PARTNERS. It trades about 0.29 of its potential returns per unit of risk. SUNOCO LOGISTICS PARTNERS is currently generating about -0.08 per unit of risk. If you would invest 15,505 in Herc Holdings on September 3, 2024 and sell it today you would earn a total of 7,695 from holding Herc Holdings or generate 49.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Herc Holdings vs. SUNOCO LOGISTICS PARTNERS
Performance |
| Timeline |
| Herc Holdings |
| SUNOCO LOGISTICS PARTNERS |
Herc Holdings and SUNOCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herc Holdings and SUNOCO
The main advantage of trading using opposite Herc Holdings and SUNOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herc Holdings position performs unexpectedly, SUNOCO 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 SUNOCO will offset losses from the drop in SUNOCO'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 |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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