Correlation Between Canoo and Suzuki
Can any of the company-specific risk be diversified away by investing in both Canoo and Suzuki 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 Canoo and Suzuki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canoo Inc and Suzuki Motor, you can compare the effects of market volatilities on Canoo and Suzuki 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 Canoo with a short position of Suzuki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canoo and Suzuki.
Diversification Opportunities for Canoo and Suzuki
Poor diversification
The 3 months correlation between Canoo and Suzuki is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Canoo Inc and Suzuki Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzuki Motor and Canoo 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 Canoo Inc are associated (or correlated) with Suzuki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzuki Motor has no effect on the direction of Canoo i.e., Canoo and Suzuki go up and down completely randomly.
Pair Corralation between Canoo and Suzuki
Given the investment horizon of 90 days Canoo Inc is expected to under-perform the Suzuki. In addition to that, Canoo is 6.61 times more volatile than Suzuki Motor. It trades about -0.16 of its total potential returns per unit of risk. Suzuki Motor is currently generating about 0.13 per unit of volatility. If you would invest 1,000.00 in Suzuki Motor on August 24, 2024 and sell it today you would earn a total of 56.00 from holding Suzuki Motor or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Canoo Inc vs. Suzuki Motor
Performance |
| Timeline |
| Canoo Inc |
| Suzuki Motor |
Canoo and Suzuki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canoo and Suzuki
The main advantage of trading using opposite Canoo and Suzuki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canoo position performs unexpectedly, Suzuki 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 Suzuki will offset losses from the drop in Suzuki's long position.| Canoo vs. Lucid Group | Canoo vs. Rivian Automotive | Canoo vs. Polestar Automotive Holding | Canoo vs. Mullen Automotive |
| Suzuki vs. Isuzu Motors | Suzuki vs. Renault SA | Suzuki vs. Mazda Motor Corp | Suzuki vs. Bayerische Motoren Werke |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |