Correlation Between Fisker and Mullen Automotive
Can any of the company-specific risk be diversified away by investing in both Fisker and Mullen Automotive 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 Fisker and Mullen Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisker Inc and Mullen Automotive, you can compare the effects of market volatilities on Fisker and Mullen Automotive 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 Fisker with a short position of Mullen Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisker and Mullen Automotive.
Diversification Opportunities for Fisker and Mullen Automotive
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fisker and Mullen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fisker Inc and Mullen Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Automotive and Fisker 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 Fisker Inc are associated (or correlated) with Mullen Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Automotive has no effect on the direction of Fisker i.e., Fisker and Mullen Automotive go up and down completely randomly.
Pair Corralation between Fisker and Mullen Automotive
Considering the 90-day investment horizon Fisker Inc is expected to generate 0.4 times more return on investment than Mullen Automotive. However, Fisker Inc is 2.52 times less risky than Mullen Automotive. It trades about 0.06 of its potential returns per unit of risk. Mullen Automotive is currently generating about -0.14 per unit of risk. If you would invest 576.00 in Fisker Inc on August 27, 2024 and sell it today you would earn a total of 39.00 from holding Fisker Inc or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 9.12% |
| Values | Daily Returns |
Fisker Inc vs. Mullen Automotive
Performance |
| Timeline |
| Fisker Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mullen Automotive |
Fisker and Mullen Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisker and Mullen Automotive
The main advantage of trading using opposite Fisker and Mullen Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisker position performs unexpectedly, Mullen Automotive 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 Mullen Automotive will offset losses from the drop in Mullen Automotive's long position.The idea behind Fisker Inc and Mullen Automotive 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.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |