Correlation Between Nikola Corp and Lightning EMotors
Can any of the company-specific risk be diversified away by investing in both Nikola Corp and Lightning EMotors 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 Lightning EMotors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nikola Corp and Lightning EMotors, you can compare the effects of market volatilities on Nikola Corp and Lightning EMotors 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 Lightning EMotors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nikola Corp and Lightning EMotors.
Diversification Opportunities for Nikola Corp and Lightning EMotors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nikola and Lightning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nikola Corp and Lightning EMotors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightning EMotors 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 Lightning EMotors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightning EMotors has no effect on the direction of Nikola Corp i.e., Nikola Corp and Lightning EMotors go up and down completely randomly.
Pair Corralation between Nikola Corp and Lightning EMotors
If you would invest 386.00 in Lightning EMotors on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Lightning EMotors or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Nikola Corp vs. Lightning EMotors
Performance |
| Timeline |
| Nikola Corp |
| Lightning EMotors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nikola Corp and Lightning EMotors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nikola Corp and Lightning EMotors
The main advantage of trading using opposite Nikola Corp and Lightning EMotors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nikola Corp position performs unexpectedly, Lightning EMotors 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 Lightning EMotors will offset losses from the drop in Lightning EMotors' long position.| Nikola Corp vs. Xos Inc | Nikola Corp vs. Hydrofarm Holdings Group | Nikola Corp vs. Caterpillar | Nikola Corp vs. AGCO Corporation |
| Lightning EMotors vs. American Premium Water | Lightning EMotors vs. Wabash National | Lightning EMotors vs. Titan International | Lightning EMotors vs. Xos Inc |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |