Workhorse Common Stock Total Equity vs Total Liab Analysis
Pair Trading with Workhorse
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Workhorse position performs unexpectedly, the other equity 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 Workhorse will appreciate offsetting losses from the drop in the long position's value.Moving together with Workhorse Stock
| 0.81 | LI | Li AutoInc Earnings Call This Week | PairCorr |
| 0.69 | QS | Quantumscape Corp | PairCorr |
Moving against Workhorse Stock
| 0.73 | GM | General Motors Earnings Call Next Week | PairCorr |
| 0.69 | ECDA | ECD Automotive Design Symbol Change | PairCorr |
| 0.58 | AXL | American Axle Manufa | PairCorr |
| 0.49 | BWA | BorgWarner | PairCorr |
The ability to find closely correlated positions to Workhorse could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Workhorse when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Workhorse - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Workhorse Group to buy it.
The correlation of Workhorse is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Workhorse moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Workhorse Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Workhorse can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Workhorse Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. Note that the Workhorse Group information on this page should be used as a complementary analysis to other Workhorse's statistical models used 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for Workhorse Stock analysis
When running Workhorse's price analysis, check to measure Workhorse's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Workhorse is operating at the current time. Most of Workhorse's value examination focuses on studying past and present price action to predict the probability of Workhorse's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Workhorse's price. Additionally, you may evaluate how the addition of Workhorse to your portfolios can decrease your overall portfolio volatility.
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Is Workhorse's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Workhorse. If investors know Workhorse will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Workhorse listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Workhorse Group is measured differently than its book value, which is the value of Workhorse that is recorded on the company's balance sheet. Investors also form their own opinion of Workhorse's value that differs from its market value or its book value, called intrinsic value, which is Workhorse's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Workhorse's market value can be influenced by many factors that don't directly affect Workhorse's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Workhorse's value and its price as these two are different measures arrived at by different means. Investors typically determine if Workhorse is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Workhorse's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.