Correlation Between Hyzon Motors and Workhorse
Can any of the company-specific risk be diversified away by investing in both Hyzon Motors and Workhorse 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 Workhorse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyzon Motors and Workhorse Group, you can compare the effects of market volatilities on Hyzon Motors and Workhorse 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 Workhorse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyzon Motors and Workhorse.
Diversification Opportunities for Hyzon Motors and Workhorse
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyzon and Workhorse is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hyzon Motors and Workhorse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workhorse Group 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 Workhorse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workhorse Group has no effect on the direction of Hyzon Motors i.e., Hyzon Motors and Workhorse go up and down completely randomly.
Pair Corralation between Hyzon Motors and Workhorse
Given the investment horizon of 90 days Hyzon Motors is expected to under-perform the Workhorse. But the stock apears to be less risky and, when comparing its historical volatility, Hyzon Motors is 2.84 times less risky than Workhorse. The stock trades about -0.05 of its potential returns per unit of risk. The Workhorse Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 86.00 in Workhorse Group on August 28, 2024 and sell it today you would earn a total of 29.00 from holding Workhorse Group or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyzon Motors vs. Workhorse Group
Performance |
| Timeline |
| Hyzon Motors |
| Workhorse Group |
Hyzon Motors and Workhorse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyzon Motors and Workhorse
The main advantage of trading using opposite Hyzon Motors and Workhorse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyzon Motors position performs unexpectedly, Workhorse 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 Workhorse will offset losses from the drop in Workhorse'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 |
| Workhorse vs. Faraday Future Intelligent | Workhorse vs. Mullen Automotive | Workhorse vs. Xpeng Inc | Workhorse vs. Nio Class A |
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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