Correlation Between Lilium Equity and Dave Warrants
Can any of the company-specific risk be diversified away by investing in both Lilium Equity and Dave Warrants 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 Lilium Equity and Dave Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lilium Equity Warrants and Dave Warrants, you can compare the effects of market volatilities on Lilium Equity and Dave Warrants 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 Lilium Equity with a short position of Dave Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and Dave Warrants.
Diversification Opportunities for Lilium Equity and Dave Warrants
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lilium and Dave is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Lilium Equity Warrants and Dave Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Warrants and Lilium Equity 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 Lilium Equity Warrants are associated (or correlated) with Dave Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Warrants has no effect on the direction of Lilium Equity i.e., Lilium Equity and Dave Warrants go up and down completely randomly.
Pair Corralation between Lilium Equity and Dave Warrants
Assuming the 90 days horizon Lilium Equity Warrants is expected to under-perform the Dave Warrants. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lilium Equity Warrants is 1.33 times less risky than Dave Warrants. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Dave Warrants is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4.10 in Dave Warrants on September 1, 2024 and sell it today you would earn a total of 12.90 from holding Dave Warrants or generate 314.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 91.74% |
| Values | Daily Returns |
Lilium Equity Warrants vs. Dave Warrants
Performance |
| Timeline |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dave Warrants |
Lilium Equity and Dave Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium Equity and Dave Warrants
The main advantage of trading using opposite Lilium Equity and Dave Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium Equity position performs unexpectedly, Dave Warrants 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 Dave Warrants will offset losses from the drop in Dave Warrants' long position.| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc | Lilium Equity vs. Microvast Holdings |
| Dave Warrants vs. Ke Holdings | Dave Warrants vs. nCino Inc | Dave Warrants vs. Kingsoft Cloud Holdings | Dave Warrants vs. Jfrog |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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