Correlation Between Hertz Global and Navios Maritime

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

Diversification Opportunities for Hertz Global and Navios Maritime

0.29

Correlation Coefficient

Hertz Global  Navios Maritime

Modest diversification

The 3 months correlation between Hertz and Navios is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hertz Global Holdings and Navios Maritime Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navios Maritime Partners 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 Navios Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navios Maritime Partners has no effect on the direction of Hertz Global i.e., Hertz Global and Navios Maritime go up and down completely randomly.

Pair Corralation between Hertz Global and Navios Maritime

Considering the 90-day investment horizon Hertz Global Holdings is expected to under-perform the Navios Maritime. In addition to that, Hertz Global is 2.4 times more volatile than Navios Maritime Partners. It trades about -0.03 of its total potential returns per unit of risk. Navios Maritime Partners is currently generating about 0.11 per unit of volatility. If you would invest  4,415  in Navios Maritime Partners on August 5, 2025 and sell it today you would earn a total of  499.00  from holding Navios Maritime Partners or generate 11.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Hertz Global Holdings  vs.  Navios Maritime Partners

Hertz Global Holdings

Risk-Adjusted Performance

Weakest

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 latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Navios Maritime Partners

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Navios Maritime Partners are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Navios Maritime may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Hertz Global and Navios Maritime

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

The idea behind Hertz Global Holdings and Navios Maritime Partners 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.