Correlation Between Nikola Corp and Shyft
Can any of the company-specific risk be diversified away by investing in both Nikola Corp and Shyft 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 Nikola Corp and Shyft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nikola Corp and Shyft Group, you can compare the effects of market volatilities on Nikola Corp and Shyft 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 Nikola Corp with a short position of Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nikola Corp and Shyft.
Diversification Opportunities for Nikola Corp and Shyft
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nikola and Shyft is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nikola Corp and Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group and Nikola 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 Nikola Corp are associated (or correlated) with Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Nikola Corp i.e., Nikola Corp and Shyft go up and down completely randomly.
Pair Corralation between Nikola Corp and Shyft
Given the investment horizon of 90 days Nikola Corp is expected to under-perform the Shyft. In addition to that, Nikola Corp is 2.74 times more volatile than Shyft Group. It trades about -0.23 of its total potential returns per unit of risk. Shyft Group is currently generating about 0.04 per unit of volatility. If you would invest 1,222 in Shyft Group on September 12, 2024 and sell it today you would earn a total of 53.00 from holding Shyft Group or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nikola Corp vs. Shyft Group
Performance |
| Timeline |
| Nikola Corp |
| Shyft Group |
Nikola Corp and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nikola Corp and Shyft
The main advantage of trading using opposite Nikola Corp and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nikola Corp position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft's long position.| Nikola Corp vs. Manitowoc | Nikola Corp vs. Terex | Nikola Corp vs. Wabash National | Nikola Corp vs. Alamo Group |
| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Manitex International | Shyft vs. Rev Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |