Correlation Between Lightning EMotors and Ideanomics
Can any of the company-specific risk be diversified away by investing in both Lightning EMotors and Ideanomics 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 Lightning EMotors and Ideanomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lightning EMotors and Ideanomics, you can compare the effects of market volatilities on Lightning EMotors and Ideanomics 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 Lightning EMotors with a short position of Ideanomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightning EMotors and Ideanomics.
Diversification Opportunities for Lightning EMotors and Ideanomics
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lightning and Ideanomics is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lightning EMotors and Ideanomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideanomics and Lightning EMotors 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 Lightning EMotors are associated (or correlated) with Ideanomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideanomics has no effect on the direction of Lightning EMotors i.e., Lightning EMotors and Ideanomics go up and down completely randomly.
Pair Corralation between Lightning EMotors and Ideanomics
If you would invest 386.00 in Lightning EMotors on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Lightning EMotors or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.86% |
| Values | Daily Returns |
Lightning EMotors vs. Ideanomics
Performance |
| Timeline |
| Lightning EMotors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ideanomics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lightning EMotors and Ideanomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lightning EMotors and Ideanomics
The main advantage of trading using opposite Lightning EMotors and Ideanomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lightning EMotors position performs unexpectedly, Ideanomics 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 Ideanomics will offset losses from the drop in Ideanomics' long position.| Lightning EMotors vs. Lion Electric Corp | Lightning EMotors vs. American Premium Water | Lightning EMotors vs. Wabash National | Lightning EMotors vs. Titan International |
| Ideanomics vs. Deere Company | Ideanomics vs. Caterpillar | Ideanomics vs. Lion Electric Corp | Ideanomics vs. Xos 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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