Correlation Between Zoomcar Holdings and Herc Holdings

Can any of the company-specific risk be diversified away by investing in both Zoomcar Holdings 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 Zoomcar Holdings and Herc Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zoomcar Holdings and Herc Holdings, you can compare the effects of market volatilities on Zoomcar Holdings 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 Zoomcar Holdings with a short position of Herc Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomcar Holdings and Herc Holdings.

Diversification Opportunities for Zoomcar Holdings and Herc Holdings

0.8

Correlation Coefficient

Zoomcar Holdings  Herc Holdings

Very poor diversification

The 3 months correlation between Zoomcar and Herc is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zoomcar Holdings and Herc Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herc Holdings and Zoomcar Holdings 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 Zoomcar Holdings 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 Zoomcar Holdings i.e., Zoomcar Holdings and Herc Holdings go up and down completely randomly.

Pair Corralation between Zoomcar Holdings and Herc Holdings

Given the investment horizon of 90 days Zoomcar Holdings is expected to under-perform the Herc Holdings. In addition to that, Zoomcar Holdings is 3.2 times more volatile than Herc Holdings. It trades about -0.29 of its total potential returns per unit of risk. Herc Holdings is currently generating about -0.13 per unit of volatility. If you would invest  18,848  in Herc Holdings on December 28, 2024 and sell it today you would lose (4,893) from holding Herc Holdings or give up 25.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.36%
Values	Daily Returns

Zoomcar Holdings  vs.  Herc Holdings

Zoomcar Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoomcar Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Herc Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Herc Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Zoomcar Holdings and Herc Holdings

The main advantage of trading using opposite Zoomcar Holdings and Herc Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomcar Holdings 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.

The idea behind Zoomcar Holdings and Herc Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.