Correlation Between India Globalization and Hyliion Holdings

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

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

Diversification Opportunities for India Globalization and Hyliion Holdings

-0.24

Correlation Coefficient

India Globalization  Hyliion Holdings

Very good diversification

The 3 months correlation between India and Hyliion is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding India Globalization Capital and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp and India Globalization 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 India Globalization Capital are associated (or correlated) with Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of India Globalization i.e., India Globalization and Hyliion Holdings go up and down completely randomly.

Pair Corralation between India Globalization and Hyliion Holdings

Considering the 90-day investment horizon India Globalization Capital is expected to under-perform the Hyliion Holdings. But the stock apears to be less risky and, when comparing its historical volatility, India Globalization Capital is 2.08 times less risky than Hyliion Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Hyliion Holdings Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  240.00  in Hyliion Holdings Corp on September 25, 2024 and sell it today you would earn a total of  35.00  from holding Hyliion Holdings Corp or generate 14.58% return on investment over 90 days.

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

India Globalization Capital  vs.  Hyliion Holdings Corp

India Globalization

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in India Globalization Capital are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, India Globalization exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hyliion Holdings Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hyliion Holdings Corp are ranked lower than 4 (%) 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.

Pair Trading with India Globalization and Hyliion Holdings

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

The idea behind India Globalization Capital and Hyliion Holdings Corp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.