Correlation Between Polestar Automotive and EV Technology
Can any of the company-specific risk be diversified away by investing in both Polestar Automotive and EV Technology 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 Polestar Automotive and EV Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polestar Automotive Holding and EV Technology Group, you can compare the effects of market volatilities on Polestar Automotive and EV Technology 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 Polestar Automotive with a short position of EV Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polestar Automotive and EV Technology.
Diversification Opportunities for Polestar Automotive and EV Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polestar and EVTGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polestar Automotive Holding and EV Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EV Technology Group and Polestar Automotive 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 Polestar Automotive Holding are associated (or correlated) with EV Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EV Technology Group has no effect on the direction of Polestar Automotive i.e., Polestar Automotive and EV Technology go up and down completely randomly.
Pair Corralation between Polestar Automotive and EV Technology
Assuming the 90 days horizon Polestar Automotive is expected to generate 1.31 times less return on investment than EV Technology. In addition to that, Polestar Automotive is 1.12 times more volatile than EV Technology Group. It trades about 0.03 of its total potential returns per unit of risk. EV Technology Group is currently generating about 0.04 per unit of volatility. If you would invest 0.45 in EV Technology Group on September 2, 2024 and sell it today you would lose (0.04) from holding EV Technology Group or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polestar Automotive Holding vs. EV Technology Group
Performance |
| Timeline |
| Polestar Automotive |
| EV Technology Group |
Polestar Automotive and EV Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polestar Automotive and EV Technology
The main advantage of trading using opposite Polestar Automotive and EV Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polestar Automotive position performs unexpectedly, EV Technology 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 EV Technology will offset losses from the drop in EV Technology's long position.| Polestar Automotive vs. Lucid Group | Polestar Automotive vs. Canoo Inc | Polestar Automotive vs. Rivian Automotive | Polestar Automotive vs. Aston Martin Lagonda |
| EV Technology vs. Genesis Electronics Group | EV Technology vs. Phoenix Motor Common | EV Technology vs. AYRO Inc | EV Technology vs. Mullen Automotive |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |