Correlation Between AYRO and Hyliion Holdings

Can any of the company-specific risk be diversified away by investing in both AYRO and Hyliion Holdings 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 AYRO and Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AYRO Inc and Hyliion Holdings Corp, you can compare the effects of market volatilities on AYRO and Hyliion Holdings 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 AYRO with a short position of Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AYRO and Hyliion Holdings.

Diversification Opportunities for AYRO and Hyliion Holdings

0.32

Correlation Coefficient

AYRO  Hyliion Holdings

Weak diversification

The 3 months correlation between AYRO and Hyliion is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AYRO Inc and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp and AYRO 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 AYRO Inc are associated (or correlated) with Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of AYRO i.e., AYRO and Hyliion Holdings go up and down completely randomly.

Pair Corralation between AYRO and Hyliion Holdings

Given the investment horizon of 90 days AYRO Inc is expected to under-perform the Hyliion Holdings. But the stock apears to be less risky and, when comparing its historical volatility, AYRO Inc is 1.78 times less risky than Hyliion Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The Hyliion Holdings Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  155.00  in Hyliion Holdings Corp on May 6, 2025 and sell it today you would lose (6.00) from holding Hyliion Holdings Corp or give up 3.87% of portfolio value over 90 days.

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

AYRO Inc  vs.  Hyliion Holdings Corp

AYRO Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days AYRO Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, AYRO is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Hyliion Holdings Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hyliion Holdings Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Hyliion Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AYRO and Hyliion Holdings

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

The idea behind AYRO Inc and Hyliion Holdings Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.