Correlation Between Falcons Beyond and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both Falcons Beyond 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 Falcons Beyond and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcons Beyond Global, and Hyliion Holdings Corp, you can compare the effects of market volatilities on Falcons Beyond 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 Falcons Beyond with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcons Beyond and Hyliion Holdings.
Diversification Opportunities for Falcons Beyond and Hyliion Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Falcons and Hyliion is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Falcons Beyond Global, 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 Falcons Beyond 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 Falcons Beyond Global, 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 Falcons Beyond i.e., Falcons Beyond and Hyliion Holdings go up and down completely randomly.
Pair Corralation between Falcons Beyond and Hyliion Holdings
Assuming the 90 days horizon Falcons Beyond is expected to generate 1.05 times less return on investment than Hyliion Holdings. In addition to that, Falcons Beyond is 2.71 times more volatile than Hyliion Holdings Corp. It trades about 0.05 of its total potential returns per unit of risk. Hyliion Holdings Corp is currently generating about 0.15 per unit of volatility. If you would invest 194.00 in Hyliion Holdings Corp on September 12, 2024 and sell it today you would earn a total of 109.50 from holding Hyliion Holdings Corp or generate 56.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.38% |
| Values | Daily Returns |
Falcons Beyond Global, vs. Hyliion Holdings Corp
Performance |
| Timeline |
| Falcons Beyond Global, |
| Hyliion Holdings Corp |
Falcons Beyond and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcons Beyond and Hyliion Holdings
The main advantage of trading using opposite Falcons Beyond and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcons Beyond 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.| Falcons Beyond vs. Park Hotels Resorts | Falcons Beyond vs. Relx PLC ADR | Falcons Beyond vs. Boyd Gaming | Falcons Beyond vs. Lincoln Educational Services |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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