Correlation Between Nuvve Holding and Canoo Holdings
Can any of the company-specific risk be diversified away by investing in both Nuvve Holding 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 Nuvve Holding and Canoo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvve Holding Corp and Canoo Holdings, you can compare the effects of market volatilities on Nuvve Holding 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 Nuvve Holding with a short position of Canoo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvve Holding and Canoo Holdings.
Diversification Opportunities for Nuvve Holding and Canoo Holdings
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuvve and Canoo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nuvve Holding Corp and Canoo Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canoo Holdings and Nuvve Holding 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 Nuvve Holding 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 Nuvve Holding i.e., Nuvve Holding and Canoo Holdings go up and down completely randomly.
Pair Corralation between Nuvve Holding and Canoo Holdings
Given the investment horizon of 90 days Nuvve Holding Corp is expected to under-perform the Canoo Holdings. In addition to that, Nuvve Holding is 1.13 times more volatile than Canoo Holdings. It trades about -0.02 of its total potential returns per unit of risk. Canoo Holdings is currently generating about -0.01 per unit of volatility. If you would invest 30.00 in Canoo Holdings on August 28, 2024 and sell it today you would lose (27.70) from holding Canoo Holdings or give up 92.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuvve Holding Corp vs. Canoo Holdings
Performance |
| Timeline |
| Nuvve Holding Corp |
| Canoo Holdings |
Nuvve Holding and Canoo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvve Holding and Canoo Holdings
The main advantage of trading using opposite Nuvve Holding and Canoo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvve Holding 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.| Nuvve Holding vs. ChargePoint Holdings | Nuvve Holding vs. Pet Acquisition LLC | Nuvve Holding vs. Ulta Beauty | Nuvve Holding vs. Best Buy Co |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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