Correlation Between Indie Semiconductor and Canoo Holdings
Can any of the company-specific risk be diversified away by investing in both Indie Semiconductor and Canoo Holdings 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 Indie Semiconductor and Canoo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indie Semiconductor Warrant and Canoo Holdings, you can compare the effects of market volatilities on Indie Semiconductor and Canoo Holdings 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 Indie Semiconductor with a short position of Canoo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indie Semiconductor and Canoo Holdings.
Diversification Opportunities for Indie Semiconductor and Canoo Holdings
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indie and Canoo is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Indie Semiconductor Warrant and Canoo Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canoo Holdings and Indie Semiconductor 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 Indie Semiconductor Warrant are associated (or correlated) with Canoo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canoo Holdings has no effect on the direction of Indie Semiconductor i.e., Indie Semiconductor and Canoo Holdings go up and down completely randomly.
Pair Corralation between Indie Semiconductor and Canoo Holdings
If you would invest 215.00 in Indie Semiconductor Warrant on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Indie Semiconductor Warrant or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Indie Semiconductor Warrant vs. Canoo Holdings
Performance |
| Timeline |
| Indie Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canoo Holdings |
Indie Semiconductor and Canoo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indie Semiconductor and Canoo Holdings
The main advantage of trading using opposite Indie Semiconductor and Canoo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indie Semiconductor position performs unexpectedly, Canoo Holdings 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 Canoo Holdings will offset losses from the drop in Canoo Holdings' long position.| Indie Semiconductor vs. Nuvve Holding Corp | Indie Semiconductor vs. EVgo Equity Warrants | Indie Semiconductor vs. Paysafe Ltd Wt | Indie Semiconductor vs. Microvast Holdings |
| Canoo Holdings vs. EVgo Equity Warrants | Canoo Holdings vs. Canoo Inc | Canoo Holdings vs. Paysafe Ltd Wt |
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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