Correlation Between ECARX Holdings and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings 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 ECARX Holdings and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECARX Holdings Warrants and Hyliion Holdings Corp, you can compare the effects of market volatilities on ECARX Holdings 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 ECARX Holdings with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Hyliion Holdings.
Diversification Opportunities for ECARX Holdings and Hyliion Holdings
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ECARX and Hyliion is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Warrants 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 ECARX 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 ECARX Holdings Warrants 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 ECARX Holdings i.e., ECARX Holdings and Hyliion Holdings go up and down completely randomly.
Pair Corralation between ECARX Holdings and Hyliion Holdings
Assuming the 90 days horizon ECARX Holdings is expected to generate 1.79 times less return on investment than Hyliion Holdings. In addition to that, ECARX Holdings is 1.92 times more volatile than Hyliion Holdings Corp. It trades about 0.07 of its total potential returns per unit of risk. Hyliion Holdings Corp is currently generating about 0.26 per unit of volatility. 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 Together |
| Strength | Insignificant |
| Accuracy | 30.43% |
| Values | Daily Returns |
ECARX Holdings Warrants vs. Hyliion Holdings Corp
Performance |
| Timeline |
| ECARX Holdings Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Hyliion Holdings Corp |
ECARX Holdings and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Hyliion Holdings
The main advantage of trading using opposite ECARX Holdings and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings 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.| ECARX Holdings vs. ECARX Holdings Class | ECARX Holdings vs. Bridger Aerospace Group | ECARX Holdings vs. NewAmsterdam Pharma | ECARX Holdings vs. Gorilla Technology Group |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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