Correlation Between Miller Industries and Canoo Holdings
Can any of the company-specific risk be diversified away by investing in both Miller Industries and Canoo 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 Miller Industries and Canoo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miller Industries and Canoo Holdings, you can compare the effects of market volatilities on Miller Industries and Canoo 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 Miller Industries with a short position of Canoo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miller Industries and Canoo Holdings.
Diversification Opportunities for Miller Industries and Canoo Holdings
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Miller and Canoo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Miller Industries and Canoo Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canoo Holdings and Miller Industries 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 Miller Industries are associated (or correlated) with Canoo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canoo Holdings has no effect on the direction of Miller Industries i.e., Miller Industries and Canoo Holdings go up and down completely randomly.
Pair Corralation between Miller Industries and Canoo Holdings
Considering the 90-day investment horizon Miller Industries is expected to generate 0.22 times more return on investment than Canoo Holdings. However, Miller Industries is 4.63 times less risky than Canoo Holdings. It trades about 0.11 of its potential returns per unit of risk. Canoo Holdings is currently generating about -0.01 per unit of risk. If you would invest 2,825 in Miller Industries on August 27, 2024 and sell it today you would earn a total of 4,368 from holding Miller Industries or generate 154.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miller Industries vs. Canoo Holdings
Performance |
| Timeline |
| Miller Industries |
| Canoo Holdings |
Miller Industries and Canoo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miller Industries and Canoo Holdings
The main advantage of trading using opposite Miller Industries and Canoo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miller Industries position performs unexpectedly, Canoo 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 Canoo Holdings will offset losses from the drop in Canoo Holdings' long position.| Miller Industries vs. Dorman Products | Miller Industries vs. Standard Motor Products | Miller Industries vs. Motorcar Parts of | Miller Industries vs. Douglas Dynamics |
| Canoo Holdings vs. EVgo Equity Warrants | Canoo Holdings vs. Canoo Inc | Canoo Holdings vs. Paysafe Ltd Wt |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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