Correlation Between Hertz Global and HyreCar
Can any of the company-specific risk be diversified away by investing in both Hertz Global 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 Hertz Global and HyreCar 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 HyreCar, you can compare the effects of market volatilities on Hertz Global 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 Hertz Global with a short position of HyreCar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and HyreCar.
Diversification Opportunities for Hertz Global and HyreCar
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hertz and HyreCar is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and HyreCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyreCar 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 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 Hertz Global i.e., Hertz Global and HyreCar go up and down completely randomly.
Pair Corralation between Hertz Global and HyreCar
If you would invest 305.00 in Hertz Global Holdings on August 31, 2024 and sell it today you would earn a total of 157.00 from holding Hertz Global Holdings or generate 51.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hertz Global Holdings vs. HyreCar
Performance |
| Timeline |
| Hertz Global Holdings |
| HyreCar |
Hertz Global and HyreCar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and HyreCar
The main advantage of trading using opposite Hertz Global and HyreCar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global 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.| Hertz Global vs. United Rentals | Hertz Global vs. Ryder System | Hertz Global vs. Herc Holdings | Hertz Global vs. Air Lease |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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