Correlation Between GUD Holdings and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both GUD Holdings and Hyliion Holdings 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 GUD Holdings and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GUD Holdings Ltd and Hyliion Holdings Corp, you can compare the effects of market volatilities on GUD Holdings and Hyliion Holdings 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 GUD Holdings with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUD Holdings and Hyliion Holdings.
Diversification Opportunities for GUD Holdings and Hyliion Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUD and Hyliion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUD Holdings Ltd and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp and GUD 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 GUD Holdings Ltd are associated (or correlated) with Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of GUD Holdings i.e., GUD Holdings and Hyliion Holdings go up and down completely randomly.
Pair Corralation between GUD Holdings and Hyliion Holdings
Assuming the 90 days horizon GUD Holdings is expected to generate 17.99 times less return on investment than Hyliion Holdings. But when comparing it to its historical volatility, GUD Holdings Ltd is 28.22 times less risky than Hyliion Holdings. It trades about 0.09 of its potential returns per unit of risk. Hyliion Holdings Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Hyliion Holdings Corp on September 12, 2024 and sell it today you would earn a total of 143.00 from holding Hyliion Holdings Corp or generate 79.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUD Holdings Ltd vs. Hyliion Holdings Corp
Performance |
| Timeline |
| GUD Holdings |
| Hyliion Holdings Corp |
GUD Holdings and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUD Holdings and Hyliion Holdings
The main advantage of trading using opposite GUD Holdings and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUD Holdings position performs unexpectedly, Hyliion Holdings 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 Hyliion Holdings will offset losses from the drop in Hyliion Holdings' long position.| GUD Holdings vs. American Axle Manufacturing | GUD Holdings vs. Lear Corporation | GUD Holdings vs. Commercial Vehicle Group | GUD Holdings vs. Adient PLC |
| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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