Correlation Between Worksport and SES AI
Can any of the company-specific risk be diversified away by investing in both Worksport and SES AI 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 Worksport and SES AI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worksport and SES AI Corp, you can compare the effects of market volatilities on Worksport and SES AI 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 Worksport with a short position of SES AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worksport and SES AI.
Diversification Opportunities for Worksport and SES AI
Very weak diversification
The 3 months correlation between Worksport and SES is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Worksport and SES AI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES AI Corp and Worksport 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 Worksport are associated (or correlated) with SES AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES AI Corp has no effect on the direction of Worksport i.e., Worksport and SES AI go up and down completely randomly.
Pair Corralation between Worksport and SES AI
Given the investment horizon of 90 days Worksport is expected to generate 0.51 times more return on investment than SES AI. However, Worksport is 1.95 times less risky than SES AI. It trades about -0.49 of its potential returns per unit of risk. SES AI Corp is currently generating about -0.47 per unit of risk. If you would invest 91.00 in Worksport on December 4, 2024 and sell it today you would lose (28.00) from holding Worksport or give up 30.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Worksport vs. SES AI Corp
Performance |
Timeline |
Worksport |
SES AI Corp |
Worksport and SES AI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Worksport and SES AI
The main advantage of trading using opposite Worksport and SES AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worksport position performs unexpectedly, SES AI 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 SES AI will offset losses from the drop in SES AI's long position.Worksport vs. Aeye Inc | Worksport vs. Luminar Technologies | Worksport vs. Modine Manufacturing | Worksport vs. Quantumscape Corp |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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