Correlation Between Bridgestone Corp and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both Bridgestone Corp and Hyliion 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 Bridgestone Corp and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgestone Corp ADR and Hyliion Holdings Corp, you can compare the effects of market volatilities on Bridgestone Corp and Hyliion 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 Bridgestone Corp with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgestone Corp and Hyliion Holdings.
Diversification Opportunities for Bridgestone Corp and Hyliion Holdings
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridgestone and Hyliion is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bridgestone Corp ADR and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp and Bridgestone Corp 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 Bridgestone Corp ADR are associated (or correlated) with Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of Bridgestone Corp i.e., Bridgestone Corp and Hyliion Holdings go up and down completely randomly.
Pair Corralation between Bridgestone Corp and Hyliion Holdings
Assuming the 90 days horizon Bridgestone Corp ADR is expected to under-perform the Hyliion Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bridgestone Corp ADR is 6.51 times less risky than Hyliion Holdings. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Hyliion Holdings Corp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Hyliion Holdings Corp on August 30, 2024 and sell it today you would earn a total of 118.00 from holding Hyliion Holdings Corp or generate 46.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bridgestone Corp ADR vs. Hyliion Holdings Corp
Performance |
| Timeline |
| Bridgestone Corp ADR |
| Hyliion Holdings Corp |
Bridgestone Corp and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgestone Corp and Hyliion Holdings
The main advantage of trading using opposite Bridgestone Corp and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgestone Corp position performs unexpectedly, Hyliion 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 Hyliion Holdings will offset losses from the drop in Hyliion Holdings' long position.| Bridgestone Corp vs. Continental AG PK | Bridgestone Corp vs. Compagnie Generale des | Bridgestone Corp vs. Denso Corp ADR | Bridgestone Corp vs. Subaru Corp ADR |
| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges |