Correlation Between Hyzon Motors and Workhorse
Can any of the company-specific risk be diversified away by investing in both Hyzon Motors and Workhorse 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 Hyzon Motors and Workhorse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyzon Motors and Workhorse Group, you can compare the effects of market volatilities on Hyzon Motors and Workhorse 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 Hyzon Motors with a short position of Workhorse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyzon Motors and Workhorse.
Diversification Opportunities for Hyzon Motors and Workhorse
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyzon and Workhorse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyzon Motors and Workhorse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workhorse Group and Hyzon Motors 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 Hyzon Motors are associated (or correlated) with Workhorse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workhorse Group has no effect on the direction of Hyzon Motors i.e., Hyzon Motors and Workhorse go up and down completely randomly.
Pair Corralation between Hyzon Motors and Workhorse
Given the investment horizon of 90 days Hyzon Motors is expected to under-perform the Workhorse. In addition to that, Hyzon Motors is 1.29 times more volatile than Workhorse Group. It trades about -0.31 of its total potential returns per unit of risk. Workhorse Group is currently generating about -0.3 per unit of volatility. If you would invest 1,288 in Workhorse Group on March 12, 2025 and sell it today you would lose (1,194) from holding Workhorse Group or give up 92.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 30.58% |
| Values | Daily Returns |
Hyzon Motors vs. Workhorse Group
Performance |
| Timeline |
| Hyzon Motors |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Workhorse Group |
Hyzon Motors and Workhorse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyzon Motors and Workhorse
The main advantage of trading using opposite Hyzon Motors and Workhorse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyzon Motors position performs unexpectedly, Workhorse 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 offset losses from the drop in Workhorse's long position.The idea behind Hyzon Motors and Workhorse Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Workhorse vs. Mullen Automotive | Workhorse vs. Xpeng Inc | Workhorse vs. Nio Class A | Workhorse vs. Lucid 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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