Correlation Between Custom Truck and Hertz Global
Can any of the company-specific risk be diversified away by investing in both Custom Truck and Hertz Global 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 Custom Truck and Hertz Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Custom Truck One and Hertz Global Holdings, you can compare the effects of market volatilities on Custom Truck and Hertz Global 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 Custom Truck with a short position of Hertz Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and Hertz Global.
Diversification Opportunities for Custom Truck and Hertz Global
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Custom and Hertz is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and Hertz Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hertz Global Holdings and Custom Truck 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 Custom Truck One are associated (or correlated) with Hertz Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hertz Global Holdings has no effect on the direction of Custom Truck i.e., Custom Truck and Hertz Global go up and down completely randomly.
Pair Corralation between Custom Truck and Hertz Global
Given the investment horizon of 90 days Custom Truck is expected to generate 10.46 times less return on investment than Hertz Global. But when comparing it to its historical volatility, Custom Truck One is 2.06 times less risky than Hertz Global. It trades about 0.01 of its potential returns per unit of risk. Hertz Global Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 511.00 in Hertz Global Holdings on August 15, 2025 and sell it today you would earn a total of 96.00 from holding Hertz Global Holdings or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Custom Truck One vs. Hertz Global Holdings
Performance |
| Timeline |
| Custom Truck One |
| Hertz Global Holdings |
Custom Truck and Hertz Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and Hertz Global
The main advantage of trading using opposite Custom Truck and Hertz Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck position performs unexpectedly, Hertz Global 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 Hertz Global will offset losses from the drop in Hertz Global's long position.| Custom Truck vs. Hertz Global Holdings | Custom Truck vs. ManpowerGroup | Custom Truck vs. PROG Holdings | Custom Truck vs. Alta Equipment Group |
| Hertz Global vs. Triton International Limited | Hertz Global vs. Custom Truck One | Hertz Global vs. JetBlue Airways Corp | Hertz Global vs. ManpowerGroup |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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