Correlation Between Workhorse and Gogoro
Can any of the company-specific risk be diversified away by investing in both Workhorse and Gogoro 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 Gogoro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workhorse Group and Gogoro Inc, you can compare the effects of market volatilities on Workhorse and Gogoro 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 Gogoro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workhorse and Gogoro.
Diversification Opportunities for Workhorse and Gogoro
Very good diversification
The 3 months correlation between Workhorse and Gogoro is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Workhorse Group and Gogoro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro 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 Gogoro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Inc has no effect on the direction of Workhorse i.e., Workhorse and Gogoro go up and down completely randomly.
Pair Corralation between Workhorse and Gogoro
Given the investment horizon of 90 days Workhorse Group is expected to under-perform the Gogoro. In addition to that, Workhorse is 1.68 times more volatile than Gogoro Inc. It trades about -0.09 of its total potential returns per unit of risk. Gogoro Inc is currently generating about -0.13 per unit of volatility. If you would invest 142.00 in Gogoro Inc on August 24, 2024 and sell it today you would lose (94.00) from holding Gogoro Inc or give up 66.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workhorse Group vs. Gogoro Inc
Performance |
| Timeline |
| Workhorse Group |
| Gogoro Inc |
Workhorse and Gogoro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workhorse and Gogoro
The main advantage of trading using opposite Workhorse and Gogoro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workhorse position performs unexpectedly, Gogoro 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 Gogoro will offset losses from the drop in Gogoro's long position.| Workhorse vs. Faraday Future Intelligent | Workhorse vs. Mullen Automotive | Workhorse vs. Xpeng Inc | Workhorse vs. Nio Class A |
| Gogoro vs. Lucid Group | Gogoro vs. Rivian Automotive | Gogoro vs. Polestar Automotive Holding | Gogoro vs. Mullen Automotive |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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