Correlation Between Ryder System and Lion Electric
Can any of the company-specific risk be diversified away by investing in both Ryder System and Lion Electric 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 Ryder System and Lion Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ryder System and Lion Electric Corp, you can compare the effects of market volatilities on Ryder System and Lion Electric 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 Ryder System with a short position of Lion Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ryder System and Lion Electric.
Diversification Opportunities for Ryder System and Lion Electric
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ryder and Lion is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ryder System and Lion Electric Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Electric Corp and Ryder System 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 Ryder System are associated (or correlated) with Lion Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Electric Corp has no effect on the direction of Ryder System i.e., Ryder System and Lion Electric go up and down completely randomly.
Pair Corralation between Ryder System and Lion Electric
Taking into account the 90-day investment horizon Ryder System is expected to generate 0.35 times more return on investment than Lion Electric. However, Ryder System is 2.82 times less risky than Lion Electric. It trades about 0.09 of its potential returns per unit of risk. Lion Electric Corp is currently generating about -0.08 per unit of risk. If you would invest 8,289 in Ryder System on August 24, 2024 and sell it today you would earn a total of 7,832 from holding Ryder System or generate 94.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ryder System vs. Lion Electric Corp
Performance |
| Timeline |
| Ryder System |
| Lion Electric Corp |
Ryder System and Lion Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ryder System and Lion Electric
The main advantage of trading using opposite Ryder System and Lion Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryder System position performs unexpectedly, Lion Electric 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 Lion Electric will offset losses from the drop in Lion Electric's long position.| Ryder System vs. AerCap Holdings NV | Ryder System vs. Alta Equipment Group | Ryder System vs. PROG Holdings | Ryder System vs. GATX Corporation |
| Lion Electric vs. Xos Inc | Lion Electric vs. Nikola Corp | Lion Electric vs. Wabash National | Lion Electric vs. American Premium Water |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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