Correlation Between Canoo Holdings and Ouster
Can any of the company-specific risk be diversified away by investing in both Canoo Holdings and Ouster 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 Holdings and Ouster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canoo Holdings and Ouster Inc, you can compare the effects of market volatilities on Canoo Holdings and Ouster 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 Holdings with a short position of Ouster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canoo Holdings and Ouster.
Diversification Opportunities for Canoo Holdings and Ouster
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canoo and Ouster is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Canoo Holdings and Ouster Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ouster Inc and Canoo Holdings 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 Holdings are associated (or correlated) with Ouster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ouster Inc has no effect on the direction of Canoo Holdings i.e., Canoo Holdings and Ouster go up and down completely randomly.
Pair Corralation between Canoo Holdings and Ouster
Assuming the 90 days horizon Canoo Holdings is expected to under-perform the Ouster. But the stock apears to be less risky and, when comparing its historical volatility, Canoo Holdings is 1.46 times less risky than Ouster. The stock trades about -0.01 of its potential returns per unit of risk. The Ouster Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Ouster Inc on September 3, 2024 and sell it today you would lose (5.51) from holding Ouster Inc or give up 42.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.11% |
| Values | Daily Returns |
Canoo Holdings vs. Ouster Inc
Performance |
| Timeline |
| Canoo Holdings |
| Ouster Inc |
Canoo Holdings and Ouster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canoo Holdings and Ouster
The main advantage of trading using opposite Canoo Holdings and Ouster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canoo Holdings position performs unexpectedly, Ouster 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 Ouster will offset losses from the drop in Ouster's long position.| Canoo Holdings vs. EVgo Equity Warrants | Canoo Holdings vs. Canoo Inc | Canoo Holdings vs. Paysafe Ltd Wt |
| Ouster vs. Aeva Technologies, WT | Ouster vs. Innoviz Technologies | Ouster vs. Paysafe Ltd Wt | Ouster vs. Nuvve Holding Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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