Correlation Between LiCycle Holdings and NeoVolta Common
Can any of the company-specific risk be diversified away by investing in both LiCycle Holdings and NeoVolta Common 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 LiCycle Holdings and NeoVolta Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiCycle Holdings Corp and NeoVolta Common Stock, you can compare the effects of market volatilities on LiCycle Holdings and NeoVolta Common 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 LiCycle Holdings with a short position of NeoVolta Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiCycle Holdings and NeoVolta Common.
Diversification Opportunities for LiCycle Holdings and NeoVolta Common
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LiCycle and NeoVolta is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding LiCycle Holdings Corp and NeoVolta Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeoVolta Common Stock and LiCycle Holdings 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 LiCycle Holdings Corp are associated (or correlated) with NeoVolta Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeoVolta Common Stock has no effect on the direction of LiCycle Holdings i.e., LiCycle Holdings and NeoVolta Common go up and down completely randomly.
Pair Corralation between LiCycle Holdings and NeoVolta Common
Given the investment horizon of 90 days LiCycle Holdings is expected to generate 2.66 times less return on investment than NeoVolta Common. In addition to that, LiCycle Holdings is 2.25 times more volatile than NeoVolta Common Stock. It trades about 0.08 of its total potential returns per unit of risk. NeoVolta Common Stock is currently generating about 0.46 per unit of volatility. If you would invest 323.00 in NeoVolta Common Stock on August 30, 2024 and sell it today you would earn a total of 220.00 from holding NeoVolta Common Stock or generate 68.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
LiCycle Holdings Corp vs. NeoVolta Common Stock
Performance |
| Timeline |
| LiCycle Holdings Corp |
| NeoVolta Common Stock |
LiCycle Holdings and NeoVolta Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiCycle Holdings and NeoVolta Common
The main advantage of trading using opposite LiCycle Holdings and NeoVolta Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiCycle Holdings position performs unexpectedly, NeoVolta Common 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 NeoVolta Common will offset losses from the drop in NeoVolta Common's long position.| LiCycle Holdings vs. Casella Waste Systems | LiCycle Holdings vs. Perma Fix Environmental Svcs | LiCycle Holdings vs. Montrose Environmental Grp | LiCycle Holdings vs. LanzaTech Global |
| NeoVolta Common vs. Solid Power | NeoVolta Common vs. Enovix Corp | NeoVolta Common vs. Microvast Holdings | NeoVolta Common vs. LiCycle Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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