Correlation Between Hyzon Motors and Phoenix
Can any of the company-specific risk be diversified away by investing in both Hyzon Motors and Phoenix 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 Phoenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyzon Motors and Phoenix Motor Common, you can compare the effects of market volatilities on Hyzon Motors and Phoenix 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 Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyzon Motors and Phoenix.
Diversification Opportunities for Hyzon Motors and Phoenix
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hyzon and Phoenix is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hyzon Motors and Phoenix Motor Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Motor Common 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 Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Motor Common has no effect on the direction of Hyzon Motors i.e., Hyzon Motors and Phoenix go up and down completely randomly.
Pair Corralation between Hyzon Motors and Phoenix
Given the investment horizon of 90 days Hyzon Motors is expected to generate 0.9 times more return on investment than Phoenix. However, Hyzon Motors is 1.11 times less risky than Phoenix. It trades about -0.06 of its potential returns per unit of risk. Phoenix Motor Common is currently generating about -0.28 per unit of risk. If you would invest 181.00 in Hyzon Motors on August 31, 2024 and sell it today you would lose (16.00) from holding Hyzon Motors or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyzon Motors vs. Phoenix Motor Common
Performance |
| Timeline |
| Hyzon Motors |
| Phoenix Motor Common |
Hyzon Motors and Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyzon Motors and Phoenix
The main advantage of trading using opposite Hyzon Motors and Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyzon Motors position performs unexpectedly, Phoenix 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 Phoenix will offset losses from the drop in Phoenix'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 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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