Correlation Between Hertz Global and NISOURCE
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By analyzing existing cross correlation between Hertz Global Holdings and NISOURCE FIN P, you can compare the effects of market volatilities on Hertz Global and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and NISOURCE.
Diversification Opportunities for Hertz Global and NISOURCE
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hertz and NISOURCE is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of Hertz Global i.e., Hertz Global and NISOURCE go up and down completely randomly.
Pair Corralation between Hertz Global and NISOURCE
Considering the 90-day investment horizon Hertz Global Holdings is expected to under-perform the NISOURCE. But the stock apears to be less risky and, when comparing its historical volatility, Hertz Global Holdings is 31.16 times less risky than NISOURCE. The stock trades about -0.04 of its potential returns per unit of risk. The NISOURCE FIN P is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,968 in NISOURCE FIN P on September 3, 2024 and sell it today you would earn a total of 7.00 from holding NISOURCE FIN P or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.72% |
| Values | Daily Returns |
Hertz Global Holdings vs. NISOURCE FIN P
Performance |
| Timeline |
| Hertz Global Holdings |
| NISOURCE FIN P |
Hertz Global and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and NISOURCE
The main advantage of trading using opposite Hertz Global and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.| Hertz Global vs. United Rentals | Hertz Global vs. Ryder System | Hertz Global vs. Herc Holdings | Hertz Global vs. Hertz Global Hldgs |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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