Correlation Between Hyliion Holdings and Luminar Technologies
Can any of the company-specific risk be diversified away by investing in both Hyliion Holdings and Luminar Technologies 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 Luminar Technologies 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 Luminar Technologies, you can compare the effects of market volatilities on Hyliion Holdings and Luminar Technologies 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 Luminar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyliion Holdings and Luminar Technologies.
Diversification Opportunities for Hyliion Holdings and Luminar Technologies
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hyliion and Luminar is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hyliion Holdings Corp and Luminar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luminar Technologies 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 Luminar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luminar Technologies has no effect on the direction of Hyliion Holdings i.e., Hyliion Holdings and Luminar Technologies go up and down completely randomly.
Pair Corralation between Hyliion Holdings and Luminar Technologies
Given the investment horizon of 90 days Hyliion Holdings Corp is expected to generate 0.95 times more return on investment than Luminar Technologies. However, Hyliion Holdings Corp is 1.05 times less risky than Luminar Technologies. It trades about 0.05 of its potential returns per unit of risk. Luminar Technologies is currently generating about -0.02 per unit of risk. If you would invest 142.00 in Hyliion Holdings Corp on March 9, 2025 and sell it today you would earn a total of 15.00 from holding Hyliion Holdings Corp or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyliion Holdings Corp vs. Luminar Technologies
Performance |
| Timeline |
| Hyliion Holdings Corp |
| Luminar Technologies |
Hyliion Holdings and Luminar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyliion Holdings and Luminar Technologies
The main advantage of trading using opposite Hyliion Holdings and Luminar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyliion Holdings position performs unexpectedly, Luminar Technologies 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 Luminar Technologies will offset losses from the drop in Luminar Technologies' long position.| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies, Common |
| Luminar Technologies vs. Mobileye Global Class | Luminar Technologies vs. Hyliion Holdings Corp | Luminar Technologies vs. Aeva Technologies, Common | Luminar Technologies vs. Innoviz 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |