Correlation Between Faraday Future and Sono Group
Can any of the company-specific risk be diversified away by investing in both Faraday Future and Sono Group 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 Faraday Future and Sono Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Faraday Future Intelligent and Sono Group NV, you can compare the effects of market volatilities on Faraday Future and Sono Group 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 Faraday Future with a short position of Sono Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Faraday Future and Sono Group.
Diversification Opportunities for Faraday Future and Sono Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Faraday and Sono is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Faraday Future Intelligent and Sono Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sono Group NV and Faraday Future 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 Faraday Future Intelligent are associated (or correlated) with Sono Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sono Group NV has no effect on the direction of Faraday Future i.e., Faraday Future and Sono Group go up and down completely randomly.
Pair Corralation between Faraday Future and Sono Group
If you would invest 135.00 in Faraday Future Intelligent on November 29, 2024 and sell it today you would earn a total of 4.50 from holding Faraday Future Intelligent or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Faraday Future Intelligent vs. Sono Group NV
Performance |
| Timeline |
| Faraday Future Intel |
| Sono Group NV |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Faraday Future and Sono Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Faraday Future and Sono Group
The main advantage of trading using opposite Faraday Future and Sono Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Faraday Future position performs unexpectedly, Sono Group 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 Sono Group will offset losses from the drop in Sono Group's long position.The idea behind Faraday Future Intelligent and Sono Group NV 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.| Sono Group vs. Mullen Automotive | Sono Group vs. Faraday Future Intelligent | Sono Group vs. AYRO Inc | Sono Group vs. Workhorse Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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