Correlation Between Lilium Equity and Sonder Holdings
Can any of the company-specific risk be diversified away by investing in both Lilium Equity and Sonder 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 Lilium Equity and Sonder Holdings 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 Sonder Holdings, you can compare the effects of market volatilities on Lilium Equity and Sonder 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 Lilium Equity with a short position of Sonder Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and Sonder Holdings.
Diversification Opportunities for Lilium Equity and Sonder Holdings
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lilium and Sonder is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Lilium Equity Warrants and Sonder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonder Holdings 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 Sonder Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonder Holdings has no effect on the direction of Lilium Equity i.e., Lilium Equity and Sonder Holdings go up and down completely randomly.
Pair Corralation between Lilium Equity and Sonder Holdings
Assuming the 90 days horizon Lilium Equity Warrants is expected to under-perform the Sonder Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lilium Equity Warrants is 1.03 times less risky than Sonder Holdings. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Sonder Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 357.00 in Sonder Holdings on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Sonder Holdings or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.1% |
| Values | Daily Returns |
Lilium Equity Warrants vs. Sonder Holdings
Performance |
| Timeline |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sonder Holdings |
Lilium Equity and Sonder Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium Equity and Sonder Holdings
The main advantage of trading using opposite Lilium Equity and Sonder Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium Equity position performs unexpectedly, Sonder 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 Sonder Holdings will offset losses from the drop in Sonder Holdings' long position.| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc | Lilium Equity vs. Microvast Holdings |
| Sonder Holdings vs. Wyndham Hotels Resorts | Sonder Holdings vs. InterContinental Hotels Group | Sonder Holdings vs. Hyatt Hotels | Sonder Holdings vs. Hilton Worldwide Holdings |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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