Correlation Between Flexsteel Industries and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both Flexsteel Industries and Hyzon Motors 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 Flexsteel Industries and Hyzon Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexsteel Industries and Hyzon Motors, you can compare the effects of market volatilities on Flexsteel Industries and Hyzon Motors 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 Flexsteel Industries with a short position of Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexsteel Industries and Hyzon Motors.
Diversification Opportunities for Flexsteel Industries and Hyzon Motors
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flexsteel and Hyzon is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Flexsteel Industries and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon Motors and Flexsteel Industries 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 Flexsteel Industries are associated (or correlated) with Hyzon Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyzon Motors has no effect on the direction of Flexsteel Industries i.e., Flexsteel Industries and Hyzon Motors go up and down completely randomly.
Pair Corralation between Flexsteel Industries and Hyzon Motors
Given the investment horizon of 90 days Flexsteel Industries is expected to generate 0.46 times more return on investment than Hyzon Motors. However, Flexsteel Industries is 2.17 times less risky than Hyzon Motors. It trades about 0.1 of its potential returns per unit of risk. Hyzon Motors is currently generating about -0.06 per unit of risk. If you would invest 1,518 in Flexsteel Industries on August 28, 2024 and sell it today you would earn a total of 4,475 from holding Flexsteel Industries or generate 294.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexsteel Industries vs. Hyzon Motors
Performance |
| Timeline |
| Flexsteel Industries |
| Hyzon Motors |
Flexsteel Industries and Hyzon Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexsteel Industries and Hyzon Motors
The main advantage of trading using opposite Flexsteel Industries and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexsteel Industries position performs unexpectedly, Hyzon Motors 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 Hyzon Motors will offset losses from the drop in Hyzon Motors' long position.| Flexsteel Industries vs. Willis Lease Finance | Flexsteel Industries vs. Rocky Brands | Flexsteel Industries vs. First Business Financial |
| Hyzon Motors vs. Mullen Automotive | Hyzon Motors vs. Canoo Inc | Hyzon Motors vs. Faraday Future Intelligent | Hyzon Motors vs. Polestar Automotive Holding |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |