Correlation Between Xpeng and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both Xpeng 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 Xpeng and Hyzon Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xpeng Inc and Hyzon Motors, you can compare the effects of market volatilities on Xpeng 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 Xpeng with a short position of Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xpeng and Hyzon Motors.
Diversification Opportunities for Xpeng and Hyzon Motors
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xpeng and Hyzon is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xpeng Inc and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon Motors and Xpeng 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 Xpeng Inc 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 Xpeng i.e., Xpeng and Hyzon Motors go up and down completely randomly.
Pair Corralation between Xpeng and Hyzon Motors
Given the investment horizon of 90 days Xpeng Inc is expected to generate 0.64 times more return on investment than Hyzon Motors. However, Xpeng Inc is 1.57 times less risky than Hyzon Motors. It trades about 0.03 of its potential returns per unit of risk. Hyzon Motors is currently generating about -0.06 per unit of risk. If you would invest 1,031 in Xpeng Inc on September 3, 2024 and sell it today you would earn a total of 174.00 from holding Xpeng Inc or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xpeng Inc vs. Hyzon Motors
Performance |
| Timeline |
| Xpeng Inc |
| Hyzon Motors |
Xpeng and Hyzon Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xpeng and Hyzon Motors
The main advantage of trading using opposite Xpeng and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xpeng 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.| Xpeng vs. GreenPower Motor | Xpeng vs. Li Auto | Xpeng vs. ZEEKR Intelligent Technology | Xpeng vs. Volcon Inc |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |