Correlation Between Electrameccanica and Canoo
Can any of the company-specific risk be diversified away by investing in both Electrameccanica and Canoo 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 Electrameccanica and Canoo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrameccanica Vehicles Corp and Canoo Inc, you can compare the effects of market volatilities on Electrameccanica and Canoo 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 Electrameccanica with a short position of Canoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrameccanica and Canoo.
Diversification Opportunities for Electrameccanica and Canoo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electrameccanica and Canoo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electrameccanica Vehicles Corp and Canoo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canoo Inc and Electrameccanica 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 Electrameccanica Vehicles Corp are associated (or correlated) with Canoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canoo Inc has no effect on the direction of Electrameccanica i.e., Electrameccanica and Canoo go up and down completely randomly.
Pair Corralation between Electrameccanica and Canoo
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Electrameccanica Vehicles Corp vs. Canoo Inc
Performance |
| Timeline |
| Electrameccanica Veh |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Canoo Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Electrameccanica and Canoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrameccanica and Canoo
The main advantage of trading using opposite Electrameccanica and Canoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrameccanica position performs unexpectedly, Canoo 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 Canoo will offset losses from the drop in Canoo's long position.| Electrameccanica vs. GreenPower Motor | Electrameccanica vs. Workhorse Group | Electrameccanica vs. Cenntro Electric Group | Electrameccanica vs. Volcon Inc |
| Canoo vs. Lucid Group | Canoo vs. Rivian Automotive | Canoo vs. Polestar Automotive Holding | Canoo vs. Mullen Automotive |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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