Correlation Between Canoo and GreenPower
Can any of the company-specific risk be diversified away by investing in both Canoo and GreenPower 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 Canoo and GreenPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canoo Inc and GreenPower Motor, you can compare the effects of market volatilities on Canoo and GreenPower 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 Canoo with a short position of GreenPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canoo and GreenPower.
Diversification Opportunities for Canoo and GreenPower
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canoo and GreenPower is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Canoo Inc and GreenPower Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPower Motor and Canoo 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 Canoo Inc are associated (or correlated) with GreenPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPower Motor has no effect on the direction of Canoo i.e., Canoo and GreenPower go up and down completely randomly.
Pair Corralation between Canoo and GreenPower
If you would invest 16.00 in Canoo Inc on March 9, 2025 and sell it today you would earn a total of 0.00 from holding Canoo Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Canoo Inc vs. GreenPower Motor
Performance |
| Timeline |
| Canoo Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| GreenPower Motor |
Canoo and GreenPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canoo and GreenPower
The main advantage of trading using opposite Canoo and GreenPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canoo position performs unexpectedly, GreenPower 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 GreenPower will offset losses from the drop in GreenPower's long position.| Canoo vs. Lucid Group | Canoo vs. Rivian Automotive | Canoo vs. Polestar Automotive Holding | Canoo vs. Mullen Automotive |
| GreenPower vs. Phoenix Motor Common | GreenPower vs. Envirotech Vehicles | GreenPower vs. Volcon Inc | GreenPower vs. Niu Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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