Correlation Between Hertz Global and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Hertz Global and Grupo Simec 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 Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hertz Global Hldgs and Grupo Simec SAB, you can compare the effects of market volatilities on Hertz Global and Grupo Simec 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 Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and Grupo Simec.
Diversification Opportunities for Hertz Global and Grupo Simec
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hertz and Grupo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Hldgs and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB 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 Hldgs are associated (or correlated) with Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of Hertz Global i.e., Hertz Global and Grupo Simec go up and down completely randomly.
Pair Corralation between Hertz Global and Grupo Simec
Assuming the 90 days horizon Hertz Global Hldgs is expected to under-perform the Grupo Simec. In addition to that, Hertz Global is 1.56 times more volatile than Grupo Simec SAB. It trades about -0.03 of its total potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.01 per unit of volatility. If you would invest 3,138 in Grupo Simec SAB on November 9, 2024 and sell it today you would lose (505.00) from holding Grupo Simec SAB or give up 16.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.65% |
| Values | Daily Returns |
Hertz Global Hldgs vs. Grupo Simec SAB
Performance |
| Timeline |
| Hertz Global Hldgs |
| Grupo Simec SAB |
Hertz Global and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and Grupo Simec
The main advantage of trading using opposite Hertz Global and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec's long position.| Hertz Global vs. Hertz Global Holdings | Hertz Global vs. Avis Budget Group | Hertz Global vs. Herc Holdings | Hertz Global vs. Frontier Group Holdings |
| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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