Correlation Between Workhorse and Fisker
Can any of the company-specific risk be diversified away by investing in both Workhorse and Fisker 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 Fisker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workhorse Group and Fisker Inc, you can compare the effects of market volatilities on Workhorse and Fisker 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 Fisker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workhorse and Fisker.
Diversification Opportunities for Workhorse and Fisker
Very weak diversification
The 3 months correlation between Workhorse and Fisker is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Workhorse Group and Fisker Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisker 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 Fisker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisker Inc has no effect on the direction of Workhorse i.e., Workhorse and Fisker go up and down completely randomly.
Pair Corralation between Workhorse and Fisker
Given the investment horizon of 90 days Workhorse Group is expected to under-perform the Fisker. In addition to that, Workhorse is 1.17 times more volatile than Fisker Inc. It trades about -0.08 of its total potential returns per unit of risk. Fisker Inc is currently generating about 0.01 per unit of volatility. If you would invest 715.00 in Fisker Inc on August 27, 2024 and sell it today you would lose (100.00) from holding Fisker Inc or give up 13.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.65% |
| Values | Daily Returns |
Workhorse Group vs. Fisker Inc
Performance |
| Timeline |
| Workhorse Group |
| Fisker Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Workhorse and Fisker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workhorse and Fisker
The main advantage of trading using opposite Workhorse and Fisker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workhorse position performs unexpectedly, Fisker 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 Fisker will offset losses from the drop in Fisker'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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