Correlation Between Hertz Global and GENERAL
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By analyzing existing cross correlation between Hertz Global Holdings and GENERAL MLS INC, you can compare the effects of market volatilities on Hertz Global and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and GENERAL.
Diversification Opportunities for Hertz Global and GENERAL
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hertz and GENERAL is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and GENERAL MLS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MLS INC 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MLS INC has no effect on the direction of Hertz Global i.e., Hertz Global and GENERAL go up and down completely randomly.
Pair Corralation between Hertz Global and GENERAL
Considering the 90-day investment horizon Hertz Global Holdings is expected to generate 3.63 times more return on investment than GENERAL. However, Hertz Global is 3.63 times more volatile than GENERAL MLS INC. It trades about 0.18 of its potential returns per unit of risk. GENERAL MLS INC is currently generating about 0.01 per unit of risk. If you would invest 299.00 in Hertz Global Holdings on September 3, 2024 and sell it today you would earn a total of 193.00 from holding Hertz Global Holdings or generate 64.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.06% |
| Values | Daily Returns |
Hertz Global Holdings vs. GENERAL MLS INC
Performance |
| Timeline |
| Hertz Global Holdings |
| GENERAL MLS INC |
Hertz Global and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and GENERAL
The main advantage of trading using opposite Hertz Global and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Hertz Global vs. United Rentals | Hertz Global vs. Ryder System | Hertz Global vs. Herc Holdings | Hertz Global vs. Hertz Global Hldgs |
| GENERAL vs. Mesa Air Group | GENERAL vs. LB Foster | GENERAL vs. Hertz Global Holdings | GENERAL vs. Avis Budget Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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