Correlation Between Shoals Technologies and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both Shoals Technologies 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 Shoals Technologies and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoals Technologies Group and Hyliion Holdings Corp, you can compare the effects of market volatilities on Shoals Technologies 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 Shoals Technologies with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoals Technologies and Hyliion Holdings.
Diversification Opportunities for Shoals Technologies and Hyliion Holdings
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shoals and Hyliion is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shoals Technologies Group 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 Shoals Technologies 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 Shoals Technologies Group 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 Shoals Technologies i.e., Shoals Technologies and Hyliion Holdings go up and down completely randomly.
Pair Corralation between Shoals Technologies and Hyliion Holdings
Given the investment horizon of 90 days Shoals Technologies Group is expected to under-perform the Hyliion Holdings. In addition to that, Shoals Technologies is 1.48 times more volatile than Hyliion Holdings Corp. It trades about -0.13 of its total potential returns per unit of risk. Hyliion Holdings Corp is currently generating about -0.09 per unit of volatility. If you would invest 263.00 in Hyliion Holdings Corp on October 23, 2024 and sell it today you would lose (20.00) from holding Hyliion Holdings Corp or give up 7.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shoals Technologies Group vs. Hyliion Holdings Corp
Performance |
| Timeline |
| Shoals Technologies |
| Hyliion Holdings Corp |
Shoals Technologies and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoals Technologies and Hyliion Holdings
The main advantage of trading using opposite Shoals Technologies and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoals Technologies 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.| Shoals Technologies vs. Array Technologies | Shoals Technologies vs. Sunnova Energy International | Shoals Technologies vs. Fluence Energy | Shoals Technologies vs. Playtika Holding Corp |
| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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