Correlation Between Titan International and Lion Electric
Can any of the company-specific risk be diversified away by investing in both Titan International 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 Titan International and Lion Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan International and Lion Electric Corp, you can compare the effects of market volatilities on Titan International 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 Titan International with a short position of Lion Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan International and Lion Electric.
Diversification Opportunities for Titan International and Lion Electric
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Titan and Lion is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Titan International 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 Titan International 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 Titan International 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 Titan International i.e., Titan International and Lion Electric go up and down completely randomly.
Pair Corralation between Titan International and Lion Electric
If you would invest 679.00 in Titan International on November 3, 2024 and sell it today you would earn a total of 204.00 from holding Titan International or generate 30.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Titan International vs. Lion Electric Corp
Performance |
| Timeline |
| Titan International |
| Lion Electric Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Titan International and Lion Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan International and Lion Electric
The main advantage of trading using opposite Titan International and Lion Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan International 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.| Titan International vs. Shyft Group | Titan International vs. Manitowoc | Titan International vs. Oshkosh | Titan International vs. Terex |
| Lion Electric vs. Xos Inc | Lion Electric vs. Ideanomics | Lion Electric vs. Nikola Corp | Lion Electric vs. Wabash National |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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