Correlation Between Vicinity and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both Vicinity 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 Vicinity and Hyzon Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vicinity Motor Corp and Hyzon Motors, you can compare the effects of market volatilities on Vicinity 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 Vicinity with a short position of Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vicinity and Hyzon Motors.
Diversification Opportunities for Vicinity and Hyzon Motors
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vicinity and Hyzon is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Vicinity Motor Corp and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon Motors and Vicinity 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 Vicinity Motor Corp 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 Vicinity i.e., Vicinity and Hyzon Motors go up and down completely randomly.
Pair Corralation between Vicinity and Hyzon Motors
Considering the 90-day investment horizon Vicinity Motor Corp is expected to under-perform the Hyzon Motors. In addition to that, Vicinity is 1.51 times more volatile than Hyzon Motors. It trades about -0.05 of its total potential returns per unit of risk. Hyzon Motors is currently generating about -0.07 per unit of volatility. If you would invest 8,000 in Hyzon Motors on August 31, 2024 and sell it today you would lose (7,835) from holding Hyzon Motors or give up 97.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Vicinity Motor Corp vs. Hyzon Motors
Performance |
| Timeline |
| Vicinity Motor Corp |
| Hyzon Motors |
Vicinity and Hyzon Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vicinity and Hyzon Motors
The main advantage of trading using opposite Vicinity and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vicinity 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.| Vicinity vs. Blue Bird Corp | Vicinity vs. AYRO Inc | Vicinity vs. BAIC Motor | Vicinity vs. Zapp Electric Vehicles |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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