Correlation Between Hyzon Motors and Stellantis
Can any of the company-specific risk be diversified away by investing in both Hyzon Motors and Stellantis 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 Stellantis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyzon Motors and Stellantis NV, you can compare the effects of market volatilities on Hyzon Motors and Stellantis 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 Stellantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyzon Motors and Stellantis.
Diversification Opportunities for Hyzon Motors and Stellantis
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hyzon and Stellantis is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hyzon Motors and Stellantis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellantis NV 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 Stellantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellantis NV has no effect on the direction of Hyzon Motors i.e., Hyzon Motors and Stellantis go up and down completely randomly.
Pair Corralation between Hyzon Motors and Stellantis
Given the investment horizon of 90 days Hyzon Motors is expected to under-perform the Stellantis. In addition to that, Hyzon Motors is 3.45 times more volatile than Stellantis NV. It trades about -0.15 of its total potential returns per unit of risk. Stellantis NV is currently generating about -0.08 per unit of volatility. If you would invest 2,111 in Stellantis NV on September 2, 2024 and sell it today you would lose (791.00) from holding Stellantis NV or give up 37.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyzon Motors vs. Stellantis NV
Performance |
| Timeline |
| Hyzon Motors |
| Stellantis NV |
Hyzon Motors and Stellantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyzon Motors and Stellantis
The main advantage of trading using opposite Hyzon Motors and Stellantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyzon Motors position performs unexpectedly, Stellantis 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 Stellantis will offset losses from the drop in Stellantis' 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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