Correlation Between Hertz Global and IShares VII
Can any of the company-specific risk be diversified away by investing in both Hertz Global and IShares VII 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 IShares VII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hertz Global Holdings and iShares VII PLC, you can compare the effects of market volatilities on Hertz Global and IShares VII 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 IShares VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and IShares VII.
Diversification Opportunities for Hertz Global and IShares VII
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hertz and IShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and iShares VII PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII PLC 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 IShares VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII PLC has no effect on the direction of Hertz Global i.e., Hertz Global and IShares VII go up and down completely randomly.
Pair Corralation between Hertz Global and IShares VII
Considering the 90-day investment horizon Hertz Global Holdings is expected to under-perform the IShares VII. In addition to that, Hertz Global is 3.95 times more volatile than iShares VII PLC. It trades about 0.0 of its total potential returns per unit of risk. iShares VII PLC is currently generating about 0.18 per unit of volatility. If you would invest 3,800,500 in iShares VII PLC on June 4, 2025 and sell it today you would earn a total of 478,000 from holding iShares VII PLC or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hertz Global Holdings vs. iShares VII PLC
Performance |
| Timeline |
| Hertz Global Holdings |
| iShares VII PLC |
Hertz Global and IShares VII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and IShares VII
The main advantage of trading using opposite Hertz Global and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, IShares VII 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 IShares VII will offset losses from the drop in IShares VII's long position.| Hertz Global vs. Hertz Global Hldgs | Hertz Global vs. Avis Budget Group | Hertz Global vs. Ryder System | Hertz Global vs. United Rentals |
| IShares VII vs. iShares Emerging Asia | IShares VII vs. iShares MSCI Global | IShares VII vs. iShares VII PLC | IShares VII vs. iShares iBonds Dec |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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