Correlation Between Hydrofarm Holdings and Lightning EMotors
Can any of the company-specific risk be diversified away by investing in both Hydrofarm Holdings and Lightning EMotors 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 Hydrofarm Holdings and Lightning EMotors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydrofarm Holdings Group and Lightning EMotors, you can compare the effects of market volatilities on Hydrofarm Holdings and Lightning EMotors 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 Hydrofarm Holdings with a short position of Lightning EMotors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrofarm Holdings and Lightning EMotors.
Diversification Opportunities for Hydrofarm Holdings and Lightning EMotors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hydrofarm and Lightning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hydrofarm Holdings Group and Lightning EMotors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightning EMotors and Hydrofarm 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 Hydrofarm Holdings Group are associated (or correlated) with Lightning EMotors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightning EMotors has no effect on the direction of Hydrofarm Holdings i.e., Hydrofarm Holdings and Lightning EMotors go up and down completely randomly.
Pair Corralation between Hydrofarm Holdings and Lightning EMotors
If you would invest 386.00 in Lightning EMotors on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Lightning EMotors or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Hydrofarm Holdings Group vs. Lightning EMotors
Performance |
| Timeline |
| Hydrofarm Holdings |
| Lightning EMotors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hydrofarm Holdings and Lightning EMotors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrofarm Holdings and Lightning EMotors
The main advantage of trading using opposite Hydrofarm Holdings and Lightning EMotors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrofarm Holdings position performs unexpectedly, Lightning EMotors 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 Lightning EMotors will offset losses from the drop in Lightning EMotors' long position.| Hydrofarm Holdings vs. Gencor Industries | Hydrofarm Holdings vs. CEA Industries | Hydrofarm Holdings vs. Arts Way Manufacturing Co | Hydrofarm Holdings vs. CubicFarm Systems Corp |
| Lightning EMotors vs. American Premium Water | Lightning EMotors vs. Wabash National | Lightning EMotors vs. Titan International | Lightning EMotors vs. Xos Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |