Correlation Between Lordstown Motors and Xpeng

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

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

Diversification Opportunities for Lordstown Motors and Xpeng

0.0

Correlation Coefficient

Lordstown Motors  Xpeng

Pay attention - limited upside

The 3 months correlation between Lordstown and Xpeng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lordstown Motors Corp and Xpeng Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xpeng Inc and Lordstown Motors 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 Lordstown Motors Corp are associated (or correlated) with Xpeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xpeng Inc has no effect on the direction of Lordstown Motors i.e., Lordstown Motors and Xpeng go up and down completely randomly.

Pair Corralation between Lordstown Motors and Xpeng

If you would invest  1,918  in Xpeng Inc on May 7, 2025 and sell it today you would lose (32.00) from holding Xpeng Inc or give up 1.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lordstown Motors Corp  vs.  Xpeng Inc

Lordstown Motors Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Lordstown Motors Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Lordstown Motors is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Xpeng Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Xpeng Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Xpeng is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Lordstown Motors and Xpeng

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

The idea behind Lordstown Motors Corp and Xpeng Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.