Correlation Between Hertz Global and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Hertz Global and Franklin Templeton 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 Franklin Templeton 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 Franklin Templeton Smacs, you can compare the effects of market volatilities on Hertz Global and Franklin Templeton 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 Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and Franklin Templeton.
Diversification Opportunities for Hertz Global and Franklin Templeton
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hertz and Franklin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and Franklin Templeton Smacs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton Smacs 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 Franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton Smacs has no effect on the direction of Hertz Global i.e., Hertz Global and Franklin Templeton go up and down completely randomly.
Pair Corralation between Hertz Global and Franklin Templeton
Considering the 90-day investment horizon Hertz Global Holdings is expected to under-perform the Franklin Templeton. In addition to that, Hertz Global is 4.72 times more volatile than Franklin Templeton Smacs. It trades about -0.03 of its total potential returns per unit of risk. Franklin Templeton Smacs is currently generating about 0.19 per unit of volatility. If you would invest 964.00 in Franklin Templeton Smacs on June 9, 2025 and sell it today you would earn a total of 110.00 from holding Franklin Templeton Smacs or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hertz Global Holdings vs. Franklin Templeton Smacs
Performance |
| Timeline |
| Hertz Global Holdings |
| Franklin Templeton Smacs |
Hertz Global and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hertz Global and Franklin Templeton
The main advantage of trading using opposite Hertz Global and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, Franklin Templeton 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 Franklin Templeton will offset losses from the drop in Franklin Templeton'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 |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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