Correlation Between Hyzon Motors and Blue Bird
Can any of the company-specific risk be diversified away by investing in both Hyzon Motors and Blue Bird 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 Hyzon Motors and Blue Bird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyzon Motors and Blue Bird Corp, you can compare the effects of market volatilities on Hyzon Motors and Blue Bird 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 Hyzon Motors with a short position of Blue Bird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyzon Motors and Blue Bird.
Diversification Opportunities for Hyzon Motors and Blue Bird
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyzon and Blue is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hyzon Motors and Blue Bird Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Bird Corp and Hyzon Motors 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 Hyzon Motors are associated (or correlated) with Blue Bird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Bird Corp has no effect on the direction of Hyzon Motors i.e., Hyzon Motors and Blue Bird go up and down completely randomly.
Pair Corralation between Hyzon Motors and Blue Bird
Given the investment horizon of 90 days Hyzon Motors is expected to under-perform the Blue Bird. In addition to that, Hyzon Motors is 1.87 times more volatile than Blue Bird Corp. It trades about -0.16 of its total potential returns per unit of risk. Blue Bird Corp is currently generating about -0.05 per unit of volatility. If you would invest 4,188 in Blue Bird Corp on August 24, 2024 and sell it today you would lose (180.00) from holding Blue Bird Corp or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyzon Motors vs. Blue Bird Corp
Performance |
| Timeline |
| Hyzon Motors |
| Blue Bird Corp |
Hyzon Motors and Blue Bird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyzon Motors and Blue Bird
The main advantage of trading using opposite Hyzon Motors and Blue Bird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyzon Motors position performs unexpectedly, Blue Bird 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 Blue Bird will offset losses from the drop in Blue Bird's long position.| Hyzon Motors vs. Mullen Automotive | Hyzon Motors vs. Canoo Inc | Hyzon Motors vs. Faraday Future Intelligent | Hyzon Motors vs. Polestar Automotive Holding |
| Blue Bird vs. Vicinity Motor Corp | Blue Bird vs. AYRO Inc | Blue Bird vs. Canoo Inc | Blue Bird vs. Hyzon Motors |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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