Correlation Between Lordstown Motors and Workhorse
Can any of the company-specific risk be diversified away by investing in both Lordstown 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 Lordstown Motors and Workhorse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lordstown Motors Corp and Workhorse Group, you can compare the effects of market volatilities on Lordstown 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 Lordstown Motors with a short position of Workhorse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lordstown Motors and Workhorse.
Diversification Opportunities for Lordstown Motors and Workhorse
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lordstown and Workhorse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lordstown Motors Corp and Workhorse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workhorse Group and Lordstown 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 Lordstown Motors Corp 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 Lordstown Motors i.e., Lordstown Motors and Workhorse go up and down completely randomly.
Pair Corralation between Lordstown Motors and Workhorse
If you would invest (100.00) in Lordstown Motors Corp on March 17, 2025 and sell it today you would earn a total of 100.00 from holding Lordstown Motors Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lordstown Motors Corp vs. Workhorse Group
Performance |
| Timeline |
| Lordstown Motors Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Workhorse Group |
Lordstown Motors and Workhorse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lordstown Motors and Workhorse
The main advantage of trading using opposite Lordstown Motors and Workhorse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lordstown 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.| Lordstown Motors vs. Workhorse Group | Lordstown Motors vs. Hyliion Holdings Corp | Lordstown Motors vs. Blink Charging Co |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |