Correlation Between Goodyear Tire and LOBO EV
Can any of the company-specific risk be diversified away by investing in both Goodyear Tire and LOBO EV 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 Goodyear Tire and LOBO EV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodyear Tire Rubber and LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on Goodyear Tire and LOBO EV 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 Goodyear Tire with a short position of LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodyear Tire and LOBO EV.
Diversification Opportunities for Goodyear Tire and LOBO EV
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goodyear and LOBO is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Goodyear Tire Rubber and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES and Goodyear Tire 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 Goodyear Tire Rubber are associated (or correlated) with LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Goodyear Tire i.e., Goodyear Tire and LOBO EV go up and down completely randomly.
Pair Corralation between Goodyear Tire and LOBO EV
Allowing for the 90-day total investment horizon Goodyear Tire Rubber is expected to generate 0.34 times more return on investment than LOBO EV. However, Goodyear Tire Rubber is 2.95 times less risky than LOBO EV. It trades about 0.01 of its potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about 0.0 per unit of risk. If you would invest 1,067 in Goodyear Tire Rubber on August 27, 2024 and sell it today you would lose (96.00) from holding Goodyear Tire Rubber or give up 9.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 34.88% |
| Values | Daily Returns |
Goodyear Tire Rubber vs. LOBO EV TECHNOLOGIES
Performance |
| Timeline |
| Goodyear Tire Rubber |
| LOBO EV TECHNOLOGIES |
Goodyear Tire and LOBO EV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodyear Tire and LOBO EV
The main advantage of trading using opposite Goodyear Tire and LOBO EV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodyear Tire position performs unexpectedly, LOBO EV 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 LOBO EV will offset losses from the drop in LOBO EV's long position.| Goodyear Tire vs. Allison Transmission Holdings | Goodyear Tire vs. Aptiv PLC | Goodyear Tire vs. LKQ Corporation | Goodyear Tire vs. Lear Corporation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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