Correlation Between Hyliion Holdings and Blink Charging

Can any of the company-specific risk be diversified away by investing in both Hyliion Holdings and Blink Charging 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 Hyliion Holdings and Blink Charging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hyliion Holdings Corp and Blink Charging Co, you can compare the effects of market volatilities on Hyliion Holdings and Blink Charging 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 Hyliion Holdings with a short position of Blink Charging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyliion Holdings and Blink Charging.

Diversification Opportunities for Hyliion Holdings and Blink Charging

-0.23

Correlation Coefficient

Hyliion Holdings  Blink Charging

Very good diversification

The 3 months correlation between Hyliion and Blink is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hyliion Holdings Corp and Blink Charging Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blink Charging and Hyliion Holdings 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 Hyliion Holdings Corp are associated (or correlated) with Blink Charging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blink Charging has no effect on the direction of Hyliion Holdings i.e., Hyliion Holdings and Blink Charging go up and down completely randomly.

Pair Corralation between Hyliion Holdings and Blink Charging

Given the investment horizon of 90 days Hyliion Holdings Corp is expected to generate 1.18 times more return on investment than Blink Charging. However, Hyliion Holdings is 1.18 times more volatile than Blink Charging Co. It trades about 0.23 of its potential returns per unit of risk. Blink Charging Co is currently generating about 0.0 per unit of risk. If you would invest  174.00  in Hyliion Holdings Corp on September 3, 2024 and sell it today you would earn a total of  195.00  from holding Hyliion Holdings Corp or generate 112.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hyliion Holdings Corp  vs.  Blink Charging Co

Hyliion Holdings Corp

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hyliion Holdings Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Hyliion Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Blink Charging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blink Charging Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Blink Charging is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Hyliion Holdings and Blink Charging

The main advantage of trading using opposite Hyliion Holdings and Blink Charging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyliion Holdings position performs unexpectedly, Blink Charging 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 Blink Charging will offset losses from the drop in Blink Charging's long position.

The idea behind Hyliion Holdings Corp and Blink Charging Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.