Correlation Between Hertz Global and NESNVX

Can any of the company-specific risk be diversified away by investing in both Hertz Global and NESNVX 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 NESNVX 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 NESNVX 35 24 SEP 25, you can compare the effects of market volatilities on Hertz Global and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hertz Global and NESNVX.

Diversification Opportunities for Hertz Global and NESNVX

-0.26

Correlation Coefficient

Hertz Global  NESNVX

Very good diversification

The 3 months correlation between Hertz and NESNVX is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and NESNVX 35 24 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 35 24 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 35 24 has no effect on the direction of Hertz Global i.e., Hertz Global and NESNVX go up and down completely randomly.

Pair Corralation between Hertz Global and NESNVX

Considering the 90-day investment horizon Hertz Global Holdings is expected to generate 6.88 times more return on investment than NESNVX. However, Hertz Global is 6.88 times more volatile than NESNVX 35 24 SEP 25. It trades about 0.1 of its potential returns per unit of risk. NESNVX 35 24 SEP 25 is currently generating about -0.08 per unit of risk. If you would invest  268.00  in Hertz Global Holdings on December 10, 2024 and sell it today you would earn a total of  139.00  from holding Hertz Global Holdings or generate 51.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	36.59%
Values	Daily Returns

Hertz Global Holdings  vs.  NESNVX 35 24 SEP 25

Hertz Global Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hertz Global Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Hertz Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

NESNVX 35 24

Risk-Adjusted Performance

Very Weak

Over the last 90 days NESNVX 35 24 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hertz Global and NESNVX

The main advantage of trading using opposite Hertz Global and NESNVX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hertz Global position performs unexpectedly, NESNVX 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 NESNVX will offset losses from the drop in NESNVX's long position.

The idea behind Hertz Global Holdings and NESNVX 35 24 SEP 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.