Honda Correlations

HMC Stock

USD 26.66 0.43 1.64%

The current 90-days correlation between Honda Motor and General Motors is 0.14 (i.e., Average diversification). The correlation of Honda is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Honda Correlation With Market

Good diversification

The correlation between Honda Motor Co and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Honda Motor Co and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Honda Motor Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with Honda Stock

0.76	QS	Quantumscape Corp	Pair Corr
0.71	VLCN	Volcon Inc	Pair Corr
0.79	ECDA	ECD Automotive Design Symbol Change	Pair Corr
0.88	FOXF	Fox Factory Holding	Pair Corr
0.77	DAN	Dana Inc	Pair Corr
0.62	FRSX	Foresight Autonomous	Pair Corr
0.71	HOG	Harley Davidson	Pair Corr
0.81	LEA	Lear	Pair Corr
0.75	SES	SES AI Corp	Pair Corr
0.81	SRI	Stoneridge	Pair Corr
0.78	SUP	Superior Industries	Pair Corr
0.78	ZAPP	Zapp Electric Vehicles	Pair Corr
0.67	HYZN	Hyzon Motors	Pair Corr
0.82	LCID	Lucid Group Aggressive Push	Pair Corr

Moving against Honda Stock

0.88	DORM	Dorman Products	Pair Corr
0.87	GM	General Motors Aggressive Push	Pair Corr
0.77	WKHS	Workhorse Group Buyout Trend	Pair Corr
0.69	GT	Goodyear Tire Rubber	Pair Corr
0.54	WKSP	Worksport	Pair Corr
0.43	F	Ford Motor Aggressive Push	Pair Corr
0.42	ZK	ZEEKR Intelligent	Pair Corr
0.38	CPS	Cooper Stnd	Pair Corr
0.33	ALV	Autoliv	Pair Corr
0.78	BH	Biglari Holdings	Pair Corr
0.74	AS	Amer Sports,	Pair Corr
0.43	BQ	Boqii Holding Limited	Pair Corr
0.39	HD	Home Depot	Pair Corr
0.36	H	Hyatt Hotels	Pair Corr

Related Correlations Analysis

	GM	STLA	RACE	F	POAHY	TM	VWAGY	RIVN	LCID
GM		-0.43	-0.48	0.61	-0.83	-0.38	-0.81	-0.42	-0.82	GM
STLA	-0.43		0.52	0.04	0.59	0.81	0.74	0.89	0.76	STLA
RACE	-0.48	0.52		-0.12	0.73	0.37	0.71	0.44	0.52	RACE
F	0.61	0.04	-0.12		-0.29	0.02	-0.22	0.03	-0.21	F
POAHY	-0.83	0.59	0.73	-0.29		0.52	0.95	0.49	0.81	POAHY
TM	-0.38	0.81	0.37	0.02	0.52		0.66	0.61	0.64	TM
VWAGY	-0.81	0.74	0.71	-0.22	0.95	0.66		0.65	0.9	VWAGY
RIVN	-0.42	0.89	0.44	0.03	0.49	0.61	0.65		0.79	RIVN
LCID	-0.82	0.76	0.52	-0.21	0.81	0.64	0.9	0.79		LCID
	GM	STLA	RACE	F	POAHY	TM	VWAGY	RIVN	LCID

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

VWAGY	+ 0.95	POAHY
LCID	+ 0.9	VWAGY
RIVN	+ 0.89	STLA
TM	+ 0.81	STLA
LCID	+ 0.81	POAHY
LCID	+ 0.79	RIVN

High negative correlations

POAHY	- 0.83	GM
LCID	- 0.82	GM
VWAGY	- 0.81	GM
RACE	- 0.48	GM
STLA	- 0.43	GM
RIVN	- 0.42	GM

Risk-Adjusted Indicators

There is a big difference between Honda Stock performing well and Honda Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Honda's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
GM	1.50	0.19	0.12	0.25	1.63	(1.61)	4.17	(2.76)	12.14
STLA	1.71	(0.42)	0.00	(0.36)	0.00	0.00	2.69	(4.04)	15.58
RACE	1.16	(0.21)	0.00	(0.19)	0.00	0.00	2.19	(2.13)	10.98
F	1.43	(0.12)	(0.02)	0.04	2.19	(1.43)	2.75	(2.90)	11.72
POAHY	1.31	(0.35)	0.00	(11.41)	0.00	0.00	2.22	(3.61)	10.40
TM	1.18	(0.13)	0.00	(0.10)	0.00	0.00	2.69	(3.07)	7.42
VWAGY	1.42	(0.40)	0.00	(16.03)	0.00	0.00	2.70	(3.52)	8.96
RIVN	2.91	(0.38)	0.00	(0.26)	0.00	0.00	5.29	(6.95)	28.00
LCID	3.01	(0.96)	0.00	(0.78)	0.00	0.00	5.88	(5.96)	30.74

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