Correlation Between Northann Corp and Canoo Holdings
Can any of the company-specific risk be diversified away by investing in both Northann Corp 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 Northann Corp and Canoo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northann Corp and Canoo Holdings, you can compare the effects of market volatilities on Northann Corp 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 Northann Corp with a short position of Canoo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northann Corp and Canoo Holdings.
Diversification Opportunities for Northann Corp and Canoo Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Northann and Canoo is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Northann Corp and Canoo Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canoo Holdings and Northann Corp 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 Northann Corp 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 Northann Corp i.e., Northann Corp and Canoo Holdings go up and down completely randomly.
Pair Corralation between Northann Corp and Canoo Holdings
Considering the 90-day investment horizon Northann Corp is expected to generate 1.33 times more return on investment than Canoo Holdings. However, Northann Corp is 1.33 times more volatile than Canoo Holdings. It trades about 0.2 of its potential returns per unit of risk. Canoo Holdings is currently generating about -0.14 per unit of risk. If you would invest 18.00 in Northann Corp on August 24, 2024 and sell it today you would earn a total of 10.00 from holding Northann Corp or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northann Corp vs. Canoo Holdings
Performance |
| Timeline |
| Northann Corp |
| Canoo Holdings |
Northann Corp and Canoo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northann Corp and Canoo Holdings
The main advantage of trading using opposite Northann Corp and Canoo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northann Corp 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.| Northann Corp vs. Guangdong Investment Limited | Northann Corp vs. Nuvalent | Northann Corp vs. Usio Inc | Northann Corp vs. Uber Technologies |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |