Correlation Between Compagnie Générale and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both Compagnie Générale 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 Compagnie Générale and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Gnrale des and Hyliion Holdings Corp, you can compare the effects of market volatilities on Compagnie Générale 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 Compagnie Générale with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Générale and Hyliion Holdings.
Diversification Opportunities for Compagnie Générale and Hyliion Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Compagnie and Hyliion is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Gnrale des 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 Compagnie Générale 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 Compagnie Gnrale des 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 Compagnie Générale i.e., Compagnie Générale and Hyliion Holdings go up and down completely randomly.
Pair Corralation between Compagnie Générale and Hyliion Holdings
Assuming the 90 days horizon Compagnie Générale is expected to generate 98.1 times less return on investment than Hyliion Holdings. But when comparing it to its historical volatility, Compagnie Gnrale des is 2.51 times less risky than Hyliion Holdings. It trades about 0.01 of its potential returns per unit of risk. Hyliion Holdings Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 239.00 in Hyliion Holdings Corp on September 2, 2024 and sell it today you would earn a total of 130.00 from holding Hyliion Holdings Corp or generate 54.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Gnrale des vs. Hyliion Holdings Corp
Performance |
| Timeline |
| Compagnie Gnrale des |
| Hyliion Holdings Corp |
Compagnie Générale and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Générale and Hyliion Holdings
The main advantage of trading using opposite Compagnie Générale and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Générale 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.| Compagnie Générale vs. Continental AG PK | Compagnie Générale vs. Bridgestone Corp ADR | Compagnie Générale vs. Continental Aktiengesellschaft | Compagnie Générale vs. Douglas Dynamics |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |