Correlation Between Workhorse and Mobileye Global
Can any of the company-specific risk be diversified away by investing in both Workhorse and Mobileye Global 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 Workhorse and Mobileye Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workhorse Group and Mobileye Global Class, you can compare the effects of market volatilities on Workhorse and Mobileye Global 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 Workhorse with a short position of Mobileye Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workhorse and Mobileye Global.
Diversification Opportunities for Workhorse and Mobileye Global
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Workhorse and Mobileye is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Workhorse Group and Mobileye Global Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileye Global Class and Workhorse 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 Workhorse Group are associated (or correlated) with Mobileye Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobileye Global Class has no effect on the direction of Workhorse i.e., Workhorse and Mobileye Global go up and down completely randomly.
Pair Corralation between Workhorse and Mobileye Global
Given the investment horizon of 90 days Workhorse Group is expected to under-perform the Mobileye Global. In addition to that, Workhorse is 1.69 times more volatile than Mobileye Global Class. It trades about -0.1 of its total potential returns per unit of risk. Mobileye Global Class is currently generating about -0.03 per unit of volatility. If you would invest 4,222 in Mobileye Global Class on October 24, 2024 and sell it today you would lose (2,548) from holding Mobileye Global Class or give up 60.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Workhorse Group vs. Mobileye Global Class
Performance |
Timeline |
Workhorse Group |
Mobileye Global Class |
Workhorse and Mobileye Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Workhorse and Mobileye Global
The main advantage of trading using opposite Workhorse and Mobileye Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workhorse position performs unexpectedly, Mobileye Global 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 Mobileye Global will offset losses from the drop in Mobileye Global's long position.Workhorse vs. Faraday Future Intelligent | Workhorse vs. Mullen Automotive | Workhorse vs. Xpeng Inc | Workhorse vs. Nio Class A |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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