Correlation Between Luminar Technologies and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both Luminar Technologies and Hyliion 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 Luminar Technologies and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luminar Technologies and Hyliion Holdings Corp, you can compare the effects of market volatilities on Luminar Technologies and Hyliion 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 Luminar Technologies with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luminar Technologies and Hyliion Holdings.
Diversification Opportunities for Luminar Technologies and Hyliion Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luminar and Hyliion is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Luminar Technologies and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp and Luminar 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 Luminar Technologies are associated (or correlated) with Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of Luminar Technologies i.e., Luminar Technologies and Hyliion Holdings go up and down completely randomly.
Pair Corralation between Luminar Technologies and Hyliion Holdings
Given the investment horizon of 90 days Luminar Technologies is expected to under-perform the Hyliion Holdings. In addition to that, Luminar Technologies is 1.36 times more volatile than Hyliion Holdings Corp. It trades about 0.0 of its total potential returns per unit of risk. Hyliion Holdings Corp is currently generating about 0.1 per unit of volatility. If you would invest 264.00 in Hyliion Holdings Corp on August 23, 2024 and sell it today you would earn a total of 27.00 from holding Hyliion Holdings Corp or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luminar Technologies vs. Hyliion Holdings Corp
Performance |
| Timeline |
| Luminar Technologies |
| Hyliion Holdings Corp |
Luminar Technologies and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luminar Technologies and Hyliion Holdings
The main advantage of trading using opposite Luminar Technologies and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luminar Technologies position performs unexpectedly, Hyliion 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 Hyliion Holdings will offset losses from the drop in Hyliion Holdings' long position.| Luminar Technologies vs. Mobileye Global Class | Luminar Technologies vs. Hyliion Holdings Corp | Luminar Technologies vs. Aeva Technologies | Luminar Technologies vs. Innoviz Technologies |
| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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