Correlation Between Xos Equity and Lilium Equity
Can any of the company-specific risk be diversified away by investing in both Xos Equity and Lilium Equity 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 Xos Equity and Lilium Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xos Equity Warrants and Lilium Equity Warrants, you can compare the effects of market volatilities on Xos Equity and Lilium Equity 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 Xos Equity with a short position of Lilium Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xos Equity and Lilium Equity.
Diversification Opportunities for Xos Equity and Lilium Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xos and Lilium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xos Equity Warrants and Lilium Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium Equity Warrants and Xos Equity 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 Xos Equity Warrants are associated (or correlated) with Lilium Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium Equity Warrants has no effect on the direction of Xos Equity i.e., Xos Equity and Lilium Equity go up and down completely randomly.
Pair Corralation between Xos Equity and Lilium Equity
If you would invest 6.00 in Xos Equity Warrants on November 27, 2024 and sell it today you would lose (4.26) from holding Xos Equity Warrants or give up 71.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Xos Equity Warrants vs. Lilium Equity Warrants
Performance |
| Timeline |
| Xos Equity Warrants |
| Lilium Equity Warrants |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xos Equity and Lilium Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xos Equity and Lilium Equity
The main advantage of trading using opposite Xos Equity and Lilium Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xos Equity position performs unexpectedly, Lilium Equity 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 Lilium Equity will offset losses from the drop in Lilium Equity's long position.| Xos Equity vs. Microvast Holdings | Xos Equity vs. EVgo Equity Warrants | Xos Equity vs. Faraday Future Intelligent | Xos Equity vs. Xos Inc |
| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Archer Aviation WT | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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