Correlation Between LOBO EV and Rivian Automotive
Can any of the company-specific risk be diversified away by investing in both LOBO EV and Rivian Automotive 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 LOBO EV and Rivian Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOBO EV TECHNOLOGIES and Rivian Automotive, you can compare the effects of market volatilities on LOBO EV and Rivian Automotive 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 LOBO EV with a short position of Rivian Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOBO EV and Rivian Automotive.
Diversification Opportunities for LOBO EV and Rivian Automotive
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LOBO and Rivian is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding LOBO EV TECHNOLOGIES and Rivian Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rivian Automotive and LOBO EV 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 LOBO EV TECHNOLOGIES are associated (or correlated) with Rivian Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rivian Automotive has no effect on the direction of LOBO EV i.e., LOBO EV and Rivian Automotive go up and down completely randomly.
Pair Corralation between LOBO EV and Rivian Automotive
Given the investment horizon of 90 days LOBO EV TECHNOLOGIES is expected to under-perform the Rivian Automotive. In addition to that, LOBO EV is 1.06 times more volatile than Rivian Automotive. It trades about -0.17 of its total potential returns per unit of risk. Rivian Automotive is currently generating about 0.01 per unit of volatility. If you would invest 1,358 in Rivian Automotive on December 28, 2024 and sell it today you would lose (56.00) from holding Rivian Automotive or give up 4.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
LOBO EV TECHNOLOGIES vs. Rivian Automotive
Performance |
Timeline |
LOBO EV TECHNOLOGIES |
Rivian Automotive |
LOBO EV and Rivian Automotive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LOBO EV and Rivian Automotive
The main advantage of trading using opposite LOBO EV and Rivian Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOBO EV position performs unexpectedly, Rivian Automotive 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 Rivian Automotive will offset losses from the drop in Rivian Automotive's long position.LOBO EV vs. Guangzhou Automobile Group | LOBO EV vs. Toro | LOBO EV vs. Tesla Inc | LOBO EV vs. Magna International |
Rivian Automotive vs. Xpeng Inc | Rivian Automotive vs. Li Auto | Rivian Automotive vs. General Motors | Rivian Automotive vs. Nio Class A |
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.
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