Correlation Between LOBO EV and Sypris Solutions

Can any of the company-specific risk be diversified away by investing in both LOBO EV and Sypris Solutions 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 Sypris Solutions 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 Sypris Solutions, you can compare the effects of market volatilities on LOBO EV and Sypris Solutions 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 Sypris Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOBO EV and Sypris Solutions.

Diversification Opportunities for LOBO EV and Sypris Solutions

0.69

Correlation Coefficient

LOBO EV  Sypris Solutions

Poor diversification

The 3 months correlation between LOBO and Sypris is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding LOBO EV TECHNOLOGIES and Sypris Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sypris Solutions 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 Sypris Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sypris Solutions has no effect on the direction of LOBO EV i.e., LOBO EV and Sypris Solutions go up and down completely randomly.

Pair Corralation between LOBO EV and Sypris Solutions

Given the investment horizon of 90 days LOBO EV TECHNOLOGIES is expected to under-perform the Sypris Solutions. But the stock apears to be less risky and, when comparing its historical volatility, LOBO EV TECHNOLOGIES is 1.95 times less risky than Sypris Solutions. The stock trades about -0.18 of its potential returns per unit of risk. The Sypris Solutions is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  207.00  in Sypris Solutions on December 27, 2024 and sell it today you would lose (45.00) from holding Sypris Solutions or give up 21.74% of portfolio value over 90 days.

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

LOBO EV TECHNOLOGIES  vs.  Sypris Solutions

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

Very Weak

Over the last 90 days LOBO EV TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Sypris Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sypris Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sypris Solutions is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with LOBO EV and Sypris Solutions

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

The idea behind LOBO EV TECHNOLOGIES and Sypris Solutions 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .