Correlation Between Workhorse and Dana
Can any of the company-specific risk be diversified away by investing in both Workhorse and Dana 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 Workhorse and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workhorse Group and Dana Inc, you can compare the effects of market volatilities on Workhorse and Dana 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 Workhorse with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workhorse and Dana.
Diversification Opportunities for Workhorse and Dana
Very good diversification
The 3 months correlation between Workhorse and Dana is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Workhorse Group and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and Workhorse 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 Workhorse Group are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Workhorse i.e., Workhorse and Dana go up and down completely randomly.
Pair Corralation between Workhorse and Dana
Given the investment horizon of 90 days Workhorse Group is expected to under-perform the Dana. In addition to that, Workhorse is 2.53 times more volatile than Dana Inc. It trades about -0.08 of its total potential returns per unit of risk. Dana Inc is currently generating about -0.03 per unit of volatility. If you would invest 1,548 in Dana Inc on August 27, 2024 and sell it today you would lose (694.00) from holding Dana Inc or give up 44.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workhorse Group vs. Dana Inc
Performance |
| Timeline |
| Workhorse Group |
| Dana Inc |
Workhorse and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workhorse and Dana
The main advantage of trading using opposite Workhorse and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workhorse position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Workhorse vs. Faraday Future Intelligent | Workhorse vs. Mullen Automotive | Workhorse vs. Xpeng Inc | Workhorse vs. Nio Class A |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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