Correlation Between NYSE Composite and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Hyliion 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 NYSE Composite and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Hyliion Holdings Corp, you can compare the effects of market volatilities on NYSE Composite and Hyliion 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 NYSE Composite with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Hyliion Holdings.
Diversification Opportunities for NYSE Composite and Hyliion Holdings
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Hyliion is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Hyliion Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Hyliion Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.16 times more return on investment than Hyliion Holdings. However, NYSE Composite is 6.13 times less risky than Hyliion Holdings. It trades about 0.21 of its potential returns per unit of risk. Hyliion Holdings Corp is currently generating about -0.13 per unit of risk. If you would invest 1,960,737 in NYSE Composite on November 18, 2024 and sell it today you would earn a total of 52,312 from holding NYSE Composite or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Hyliion Holdings Corp
Performance |
| Timeline |
NYSE Composite and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Hyliion Holdings Corp
Pair trading matchups for Hyliion Holdings
Pair Trading with NYSE Composite and Hyliion Holdings
The main advantage of trading using opposite NYSE Composite and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Hyliion 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 Hyliion Holdings will offset losses from the drop in Hyliion Holdings' long position.| NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Allied Gaming Entertainment | NYSE Composite vs. Asure Software | NYSE Composite vs. SohuCom |
| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies, Common |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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