Correlation Between Luminar Technologies and Worksport
Can any of the company-specific risk be diversified away by investing in both Luminar Technologies and Worksport 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 Worksport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luminar Technologies and Worksport, you can compare the effects of market volatilities on Luminar Technologies and Worksport 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 Worksport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luminar Technologies and Worksport.
Diversification Opportunities for Luminar Technologies and Worksport
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Luminar and Worksport is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Luminar Technologies and Worksport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worksport 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 Worksport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worksport has no effect on the direction of Luminar Technologies i.e., Luminar Technologies and Worksport go up and down completely randomly.
Pair Corralation between Luminar Technologies and Worksport
Given the investment horizon of 90 days Luminar Technologies is expected to under-perform the Worksport. In addition to that, Luminar Technologies is 1.07 times more volatile than Worksport. It trades about -0.16 of its total potential returns per unit of risk. Worksport is currently generating about -0.1 per unit of volatility. If you would invest 74.00 in Worksport on August 31, 2024 and sell it today you would lose (15.00) from holding Worksport or give up 20.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luminar Technologies vs. Worksport
Performance |
| Timeline |
| Luminar Technologies |
| Worksport |
Luminar Technologies and Worksport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luminar Technologies and Worksport
The main advantage of trading using opposite Luminar Technologies and Worksport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luminar Technologies position performs unexpectedly, Worksport 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 Worksport will offset losses from the drop in Worksport's long position.| Luminar Technologies vs. Mobileye Global Class | Luminar Technologies vs. Hyliion Holdings Corp | Luminar Technologies vs. Aeva Technologies | Luminar Technologies vs. Innoviz Technologies |
| Worksport vs. Aeye Inc | Worksport vs. Luminar Technologies | Worksport vs. Modine Manufacturing | Worksport vs. Quantumscape Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |