Correlation Between Sonder Holdings and Lilium Equity
Can any of the company-specific risk be diversified away by investing in both Sonder Holdings and Lilium Equity 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 Sonder Holdings and Lilium Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonder Holdings and Lilium Equity Warrants, you can compare the effects of market volatilities on Sonder Holdings and Lilium Equity 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 Sonder Holdings with a short position of Lilium Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonder Holdings and Lilium Equity.
Diversification Opportunities for Sonder Holdings and Lilium Equity
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sonder and Lilium is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sonder Holdings and Lilium Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium Equity Warrants and Sonder Holdings 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 Sonder Holdings are associated (or correlated) with Lilium Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium Equity Warrants has no effect on the direction of Sonder Holdings i.e., Sonder Holdings and Lilium Equity go up and down completely randomly.
Pair Corralation between Sonder Holdings and Lilium Equity
Given the investment horizon of 90 days Sonder Holdings is expected to generate 1.03 times more return on investment than Lilium Equity. However, Sonder Holdings is 1.03 times more volatile than Lilium Equity Warrants. It trades about 0.06 of its potential returns per unit of risk. Lilium Equity Warrants is currently generating about -0.06 per unit of risk. If you would invest 357.00 in Sonder Holdings on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Sonder Holdings or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.1% |
| Values | Daily Returns |
Sonder Holdings vs. Lilium Equity Warrants
Performance |
| Timeline |
| Sonder Holdings |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sonder Holdings and Lilium Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonder Holdings and Lilium Equity
The main advantage of trading using opposite Sonder Holdings and Lilium Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonder Holdings position performs unexpectedly, Lilium Equity 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 Lilium Equity will offset losses from the drop in Lilium Equity's long position.| Sonder Holdings vs. Wyndham Hotels Resorts | Sonder Holdings vs. InterContinental Hotels Group | Sonder Holdings vs. Hyatt Hotels | Sonder Holdings vs. Hilton Worldwide Holdings |
| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc | Lilium Equity vs. Microvast Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |