Correlation Between GreenPower and Mercedes Benz
Can any of the company-specific risk be diversified away by investing in both GreenPower and Mercedes Benz 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 GreenPower and Mercedes Benz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenPower Motor and Mercedes Benz Group AG, you can compare the effects of market volatilities on GreenPower and Mercedes Benz 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 GreenPower with a short position of Mercedes Benz. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenPower and Mercedes Benz.
Diversification Opportunities for GreenPower and Mercedes Benz
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenPower and Mercedes is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding GreenPower Motor and Mercedes Benz Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercedes Benz Group and GreenPower 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 GreenPower Motor are associated (or correlated) with Mercedes Benz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercedes Benz Group has no effect on the direction of GreenPower i.e., GreenPower and Mercedes Benz go up and down completely randomly.
Pair Corralation between GreenPower and Mercedes Benz
Allowing for the 90-day total investment horizon GreenPower Motor is expected to under-perform the Mercedes Benz. In addition to that, GreenPower is 3.7 times more volatile than Mercedes Benz Group AG. It trades about -0.02 of its total potential returns per unit of risk. Mercedes Benz Group AG is currently generating about -0.01 per unit of volatility. If you would invest 1,775 in Mercedes Benz Group AG on November 2, 2024 and sell it today you would lose (238.00) from holding Mercedes Benz Group AG or give up 13.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenPower Motor vs. Mercedes Benz Group AG
Performance |
| Timeline |
| GreenPower Motor |
| Mercedes Benz Group |
GreenPower and Mercedes Benz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenPower and Mercedes Benz
The main advantage of trading using opposite GreenPower and Mercedes Benz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenPower position performs unexpectedly, Mercedes Benz 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 Mercedes Benz will offset losses from the drop in Mercedes Benz's long position.| GreenPower vs. Phoenix Motor Common | GreenPower vs. Envirotech Vehicles | GreenPower vs. Volcon Inc | GreenPower vs. Zapp Electric Vehicles |
| Mercedes Benz vs. Porsche Automobile Holding | Mercedes Benz vs. Volkswagen AG 110 | Mercedes Benz vs. Mercedes Benz Group AG | Mercedes Benz vs. Volkswagen AG Pref |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |