Correlation Between PTRA and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both PTRA and Hyzon Motors 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 PTRA and Hyzon Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTRA and Hyzon Motors, you can compare the effects of market volatilities on PTRA and Hyzon Motors 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 PTRA with a short position of Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTRA and Hyzon Motors.
Diversification Opportunities for PTRA and Hyzon Motors
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTRA and Hyzon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding PTRA and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon Motors and PTRA 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 PTRA are associated (or correlated) with Hyzon Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyzon Motors has no effect on the direction of PTRA i.e., PTRA and Hyzon Motors go up and down completely randomly.
Pair Corralation between PTRA and Hyzon Motors
If you would invest 154.00 in PTRA on October 20, 2024 and sell it today you would earn a total of 0.00 from holding PTRA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
PTRA vs. Hyzon Motors
Performance |
| Timeline |
| PTRA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hyzon Motors |
PTRA and Hyzon Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTRA and Hyzon Motors
The main advantage of trading using opposite PTRA and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTRA position performs unexpectedly, Hyzon Motors 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 Hyzon Motors will offset losses from the drop in Hyzon Motors' long position.| PTRA vs. Faraday Future Intelligent | PTRA vs. Mullen Automotive | PTRA vs. Canoo Inc | PTRA vs. Hyzon Motors |
| Hyzon Motors vs. Mullen Automotive | Hyzon Motors vs. Canoo Inc | Hyzon Motors vs. Faraday Future Intelligent | Hyzon Motors vs. Polestar Automotive Holding |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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