Correlation Between Hertz Global and Global Payment
Can any of the company-specific risk be diversified away by investing in both Hertz Global and Global Payment 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 Hertz Global and Global Payment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hertz Global Holdings and Global Payment Technologies, you can compare the effects of market volatilities on Hertz Global and Global Payment 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 Hertz Global with a short position of Global Payment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and Global Payment.
Diversification Opportunities for Hertz Global and Global Payment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hertz and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and Global Payment Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payment Techn and Hertz Global 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 Hertz Global Holdings are associated (or correlated) with Global Payment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payment Techn has no effect on the direction of Hertz Global i.e., Hertz Global and Global Payment go up and down completely randomly.
Pair Corralation between Hertz Global and Global Payment
If you would invest 337.00 in Hertz Global Holdings on September 12, 2024 and sell it today you would earn a total of 115.00 from holding Hertz Global Holdings or generate 34.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hertz Global Holdings vs. Global Payment Technologies
Performance |
| Timeline |
| Hertz Global Holdings |
| Global Payment Techn |
Hertz Global and Global Payment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and Global Payment
The main advantage of trading using opposite Hertz Global and Global Payment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, Global Payment 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 Global Payment will offset losses from the drop in Global Payment's long position.| Hertz Global vs. United Rentals | Hertz Global vs. Ryder System | Hertz Global vs. Herc Holdings | Hertz Global vs. Hertz Global Hldgs |
| Global Payment vs. Kaltura | Global Payment vs. FTAI Aviation Ltd | Global Payment vs. Hertz Global Holdings | Global Payment vs. Getty Images Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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