Correlation Between Mercedes Benz and NikolaCorp
Can any of the company-specific risk be diversified away by investing in both Mercedes Benz and NikolaCorp 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 Mercedes Benz and NikolaCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercedes Benz Group and NikolaCorp, you can compare the effects of market volatilities on Mercedes Benz and NikolaCorp 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 Mercedes Benz with a short position of NikolaCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercedes Benz and NikolaCorp.
Diversification Opportunities for Mercedes Benz and NikolaCorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercedes and NikolaCorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mercedes Benz Group and NikolaCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NikolaCorp and Mercedes Benz 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 Mercedes Benz Group are associated (or correlated) with NikolaCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NikolaCorp has no effect on the direction of Mercedes Benz i.e., Mercedes Benz and NikolaCorp go up and down completely randomly.
Pair Corralation between Mercedes Benz and NikolaCorp
If you would invest (100.00) in Mercedes Benz Group on December 29, 2023 and sell it today you would earn a total of 100.00 from holding Mercedes Benz Group 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 |
Mercedes Benz Group vs. NikolaCorp
Performance |
Timeline |
Mercedes Benz Group |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
NikolaCorp |
Mercedes Benz and NikolaCorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mercedes Benz and NikolaCorp
The main advantage of trading using opposite Mercedes Benz and NikolaCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercedes Benz position performs unexpectedly, NikolaCorp 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 NikolaCorp will offset losses from the drop in NikolaCorp's long position.Mercedes Benz vs. CDW Corp | Mercedes Benz vs. Arhaus Inc | Mercedes Benz vs. Valvoline | Mercedes Benz vs. Intchains Group Limited |
NikolaCorp vs. Deere Company | NikolaCorp vs. Hyster Yale Materials Handling | NikolaCorp vs. Lion Electric Corp | NikolaCorp vs. Titan International |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
CEOs Directory Screen CEOs from public companies around the world | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Stocks Directory Find actively traded stocks across global markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |