Correlation Between Hertz Global and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Hertz Global and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on Hertz Global and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and Solstad Offshore.
Diversification Opportunities for Hertz Global and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hertz and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Hldgs and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Hertz Global i.e., Hertz Global and Solstad Offshore go up and down completely randomly.
Pair Corralation between Hertz Global and Solstad Offshore
If you would invest 194.00 in Hertz Global Hldgs on November 8, 2024 and sell it today you would earn a total of 54.00 from holding Hertz Global Hldgs or generate 27.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Hertz Global Hldgs vs. Solstad Offshore ASA
Performance |
| Timeline |
| Hertz Global Hldgs |
| Solstad Offshore ASA |
Hertz Global and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and Solstad Offshore
The main advantage of trading using opposite Hertz Global and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore'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 |
| Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. AP Moeller Maersk AS | Solstad Offshore vs. AP Mller |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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