Correlation Between Hyzon Motors and Vicinity
Can any of the company-specific risk be diversified away by investing in both Hyzon Motors and Vicinity 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 Vicinity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyzon Motors and Vicinity Motor Corp, you can compare the effects of market volatilities on Hyzon Motors and Vicinity 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 Vicinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyzon Motors and Vicinity.
Diversification Opportunities for Hyzon Motors and Vicinity
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyzon and Vicinity is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hyzon Motors and Vicinity Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicinity Motor 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 Vicinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicinity Motor Corp has no effect on the direction of Hyzon Motors i.e., Hyzon Motors and Vicinity go up and down completely randomly.
Pair Corralation between Hyzon Motors and Vicinity
Given the investment horizon of 90 days Hyzon Motors is expected to generate 0.66 times more return on investment than Vicinity. However, Hyzon Motors is 1.51 times less risky than Vicinity. It trades about -0.07 of its potential returns per unit of risk. Vicinity Motor Corp is currently generating about -0.05 per unit of risk. If you would invest 8,000 in Hyzon Motors on August 31, 2024 and sell it today you would lose (7,835) from holding Hyzon Motors or give up 97.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hyzon Motors vs. Vicinity Motor Corp
Performance |
| Timeline |
| Hyzon Motors |
| Vicinity Motor Corp |
Hyzon Motors and Vicinity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyzon Motors and Vicinity
The main advantage of trading using opposite Hyzon Motors and Vicinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyzon Motors position performs unexpectedly, Vicinity 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 Vicinity will offset losses from the drop in Vicinity'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 |
| Vicinity vs. Blue Bird Corp | Vicinity vs. AYRO Inc | Vicinity vs. BAIC Motor | Vicinity vs. Zapp Electric Vehicles |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |