Correlation Between Cenntro Electric and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both Cenntro Electric and Hyzon Motors 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 Cenntro Electric and Hyzon Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenntro Electric Group and Hyzon Motors, you can compare the effects of market volatilities on Cenntro Electric and Hyzon Motors 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 Cenntro Electric with a short position of Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenntro Electric and Hyzon Motors.
Diversification Opportunities for Cenntro Electric and Hyzon Motors
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cenntro and Hyzon is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cenntro Electric Group and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon Motors and Cenntro Electric 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 Cenntro Electric Group are associated (or correlated) with Hyzon Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyzon Motors has no effect on the direction of Cenntro Electric i.e., Cenntro Electric and Hyzon Motors go up and down completely randomly.
Pair Corralation between Cenntro Electric and Hyzon Motors
Given the investment horizon of 90 days Cenntro Electric Group is expected to generate 1.34 times more return on investment than Hyzon Motors. However, Cenntro Electric is 1.34 times more volatile than Hyzon Motors. It trades about -0.12 of its potential returns per unit of risk. Hyzon Motors is currently generating about -0.31 per unit of risk. If you would invest 169.00 in Cenntro Electric Group on February 4, 2024 and sell it today you would lose (23.00) from holding Cenntro Electric Group or give up 13.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cenntro Electric Group vs. Hyzon Motors
Performance |
Timeline |
Cenntro Electric |
Hyzon Motors |
Cenntro Electric and Hyzon Motors Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cenntro Electric and Hyzon Motors
The main advantage of trading using opposite Cenntro Electric and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenntro Electric position performs unexpectedly, Hyzon Motors 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 Hyzon Motors will offset losses from the drop in Hyzon Motors' long position.Cenntro Electric vs. Mullen Automotive | Cenntro Electric vs. Canoo Inc | Cenntro Electric vs. Hyzon Motors | Cenntro Electric vs. AYRO Inc |
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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 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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