Correlation Between Innoviz Technologies and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both Innoviz Technologies and Hyzon Motors 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 Innoviz Technologies and Hyzon Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innoviz Technologies and Hyzon Motors, you can compare the effects of market volatilities on Innoviz Technologies and Hyzon Motors 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 Innoviz Technologies with a short position of Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innoviz Technologies and Hyzon Motors.
Diversification Opportunities for Innoviz Technologies and Hyzon Motors
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Innoviz and Hyzon is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon Motors and Innoviz Technologies 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 Innoviz Technologies are associated (or correlated) with Hyzon Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyzon Motors has no effect on the direction of Innoviz Technologies i.e., Innoviz Technologies and Hyzon Motors go up and down completely randomly.
Pair Corralation between Innoviz Technologies and Hyzon Motors
Given the investment horizon of 90 days Innoviz Technologies is expected to generate 1.08 times more return on investment than Hyzon Motors. However, Innoviz Technologies is 1.08 times more volatile than Hyzon Motors. It trades about -0.06 of its potential returns per unit of risk. Hyzon Motors is currently generating about -0.26 per unit of risk. If you would invest 188.00 in Innoviz Technologies on November 9, 2024 and sell it today you would lose (28.00) from holding Innoviz Technologies or give up 14.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innoviz Technologies vs. Hyzon Motors
Performance |
| Timeline |
| Innoviz Technologies |
| Hyzon Motors |
Innoviz Technologies and Hyzon Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innoviz Technologies and Hyzon Motors
The main advantage of trading using opposite Innoviz Technologies and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innoviz Technologies position performs unexpectedly, Hyzon Motors 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 Hyzon Motors will offset losses from the drop in Hyzon Motors' long position.| Innoviz Technologies vs. Aeye Inc | Innoviz Technologies vs. Luminar Technologies | Innoviz Technologies vs. Hesai Group American | Innoviz Technologies vs. Mobileye Global Class |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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