Correlation Between Garrett Motion and Volcon
Can any of the company-specific risk be diversified away by investing in both Garrett Motion and Volcon 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 Garrett Motion and Volcon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garrett Motion and Volcon Inc, you can compare the effects of market volatilities on Garrett Motion and Volcon 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 Garrett Motion with a short position of Volcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garrett Motion and Volcon.
Diversification Opportunities for Garrett Motion and Volcon
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Garrett and Volcon is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Garrett Motion and Volcon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcon Inc and Garrett Motion 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 Garrett Motion are associated (or correlated) with Volcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcon Inc has no effect on the direction of Garrett Motion i.e., Garrett Motion and Volcon go up and down completely randomly.
Pair Corralation between Garrett Motion and Volcon
Considering the 90-day investment horizon Garrett Motion is expected to generate 0.65 times more return on investment than Volcon. However, Garrett Motion is 1.53 times less risky than Volcon. It trades about 0.12 of its potential returns per unit of risk. Volcon Inc is currently generating about -0.03 per unit of risk. If you would invest 813.00 in Garrett Motion on March 28, 2025 and sell it today you would earn a total of 214.50 from holding Garrett Motion or generate 26.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garrett Motion vs. Volcon Inc
Performance |
| Timeline |
| Garrett Motion |
| Volcon Inc |
Garrett Motion and Volcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garrett Motion and Volcon
The main advantage of trading using opposite Garrett Motion and Volcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garrett Motion position performs unexpectedly, Volcon 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 Volcon will offset losses from the drop in Volcon's long position.| Garrett Motion vs. Resideo Technologies | Garrett Motion vs. AdvanSix | Garrett Motion vs. GrafTech International | Garrett Motion vs. Innoviva |
| Volcon vs. AYRO Inc | Volcon vs. Workhorse Group | Volcon vs. GreenPower Motor | Volcon vs. Cenntro Electric Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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