Correlation Between Hyliion Holdings and Goodyear Tire
Can any of the company-specific risk be diversified away by investing in both Hyliion Holdings and Goodyear Tire 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 Hyliion Holdings and Goodyear Tire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyliion Holdings Corp and Goodyear Tire Rubber, you can compare the effects of market volatilities on Hyliion Holdings and Goodyear Tire 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 Hyliion Holdings with a short position of Goodyear Tire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyliion Holdings and Goodyear Tire.
Diversification Opportunities for Hyliion Holdings and Goodyear Tire
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyliion and Goodyear is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hyliion Holdings Corp and Goodyear Tire Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodyear Tire Rubber and Hyliion Holdings 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 Hyliion Holdings Corp are associated (or correlated) with Goodyear Tire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodyear Tire Rubber has no effect on the direction of Hyliion Holdings i.e., Hyliion Holdings and Goodyear Tire go up and down completely randomly.
Pair Corralation between Hyliion Holdings and Goodyear Tire
Given the investment horizon of 90 days Hyliion Holdings Corp is expected to under-perform the Goodyear Tire. In addition to that, Hyliion Holdings is 2.79 times more volatile than Goodyear Tire Rubber. It trades about -0.03 of its total potential returns per unit of risk. Goodyear Tire Rubber is currently generating about 0.05 per unit of volatility. If you would invest 1,179 in Goodyear Tire Rubber on March 4, 2024 and sell it today you would earn a total of 52.00 from holding Goodyear Tire Rubber or generate 4.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hyliion Holdings Corp vs. Goodyear Tire Rubber
Performance |
Timeline |
Hyliion Holdings Corp |
Goodyear Tire Rubber |
Hyliion Holdings and Goodyear Tire Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyliion Holdings and Goodyear Tire
The main advantage of trading using opposite Hyliion Holdings and Goodyear Tire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyliion Holdings position performs unexpectedly, Goodyear Tire 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 Goodyear Tire will offset losses from the drop in Goodyear Tire's long position.Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies |
Goodyear Tire vs. Allison Transmission Holdings | Goodyear Tire vs. Aptiv PLC | Goodyear Tire vs. LKQ Corporation | Goodyear Tire vs. Lear Corporation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |