Correlation Between Hyliion Holdings and Compagnie Générale
Can any of the company-specific risk be diversified away by investing in both Hyliion Holdings and Compagnie Générale 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 Hyliion Holdings and Compagnie Générale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyliion Holdings Corp and Compagnie Gnrale des, you can compare the effects of market volatilities on Hyliion Holdings and Compagnie Générale 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 Hyliion Holdings with a short position of Compagnie Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyliion Holdings and Compagnie Générale.
Diversification Opportunities for Hyliion Holdings and Compagnie Générale
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyliion and Compagnie is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hyliion Holdings Corp and Compagnie Gnrale des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Gnrale des and Hyliion 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 Hyliion Holdings Corp are associated (or correlated) with Compagnie Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Gnrale des has no effect on the direction of Hyliion Holdings i.e., Hyliion Holdings and Compagnie Générale go up and down completely randomly.
Pair Corralation between Hyliion Holdings and Compagnie Générale
Given the investment horizon of 90 days Hyliion Holdings Corp is expected to generate 1.92 times more return on investment than Compagnie Générale. However, Hyliion Holdings is 1.92 times more volatile than Compagnie Gnrale des. It trades about 0.06 of its potential returns per unit of risk. Compagnie Gnrale des is currently generating about 0.03 per unit of risk. If you would invest 190.00 in Hyliion Holdings Corp on September 2, 2024 and sell it today you would earn a total of 179.00 from holding Hyliion Holdings Corp or generate 94.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.38% |
| Values | Daily Returns |
Hyliion Holdings Corp vs. Compagnie Gnrale des
Performance |
| Timeline |
| Hyliion Holdings Corp |
| Compagnie Gnrale des |
Hyliion Holdings and Compagnie Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyliion Holdings and Compagnie Générale
The main advantage of trading using opposite Hyliion Holdings and Compagnie Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyliion Holdings position performs unexpectedly, Compagnie Générale 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 Compagnie Générale will offset losses from the drop in Compagnie Générale's long position.| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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