Correlation Between Wicket Gaming and Herc Holdings
Can any of the company-specific risk be diversified away by investing in both Wicket Gaming and Herc Holdings 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 Wicket Gaming and Herc Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wicket Gaming AB and Herc Holdings, you can compare the effects of market volatilities on Wicket Gaming and Herc Holdings 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 Wicket Gaming with a short position of Herc Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicket Gaming and Herc Holdings.
Diversification Opportunities for Wicket Gaming and Herc Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wicket and Herc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicket Gaming AB and Herc Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herc Holdings and Wicket Gaming 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 Wicket Gaming AB are associated (or correlated) with Herc Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herc Holdings has no effect on the direction of Wicket Gaming i.e., Wicket Gaming and Herc Holdings go up and down completely randomly.
Pair Corralation between Wicket Gaming and Herc Holdings
If you would invest 20,914 in Herc Holdings on September 1, 2024 and sell it today you would earn a total of 2,286 from holding Herc Holdings or generate 10.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Wicket Gaming AB vs. Herc Holdings
Performance |
| Timeline |
| Wicket Gaming AB |
| Herc Holdings |
Wicket Gaming and Herc Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wicket Gaming and Herc Holdings
The main advantage of trading using opposite Wicket Gaming and Herc Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wicket Gaming position performs unexpectedly, Herc Holdings 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 Herc Holdings will offset losses from the drop in Herc Holdings' long position.| Wicket Gaming vs. Molson Coors Brewing | Wicket Gaming vs. Vita Coco | Wicket Gaming vs. WEC Energy Group | Wicket Gaming vs. Pure Cycle |
| Herc Holdings vs. McGrath RentCorp | Herc Holdings vs. Alta Equipment Group | Herc Holdings vs. Custom Truck One | Herc Holdings vs. GATX 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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