Correlation Between NikolaCorp and Mercedes Benz
Can any of the company-specific risk be diversified away by investing in both NikolaCorp and Mercedes Benz 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 NikolaCorp and Mercedes Benz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NikolaCorp and Mercedes Benz Group, you can compare the effects of market volatilities on NikolaCorp and Mercedes Benz 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 NikolaCorp with a short position of Mercedes Benz. Check out your portfolio center. Please also check ongoing floating volatility patterns of NikolaCorp and Mercedes Benz.
Diversification Opportunities for NikolaCorp and Mercedes Benz
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NikolaCorp and Mercedes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NikolaCorp and Mercedes Benz Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercedes Benz Group and NikolaCorp 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 NikolaCorp are associated (or correlated) with Mercedes Benz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercedes Benz Group has no effect on the direction of NikolaCorp i.e., NikolaCorp and Mercedes Benz go up and down completely randomly.
Pair Corralation between NikolaCorp and Mercedes Benz
If you would invest 206.00 in NikolaCorp on December 29, 2023 and sell it today you would lose (115.00) from holding NikolaCorp or give up 55.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
NikolaCorp vs. Mercedes Benz Group
Performance |
Timeline |
NikolaCorp |
Mercedes Benz Group |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
NikolaCorp and Mercedes Benz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NikolaCorp and Mercedes Benz
The main advantage of trading using opposite NikolaCorp and Mercedes Benz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NikolaCorp position performs unexpectedly, Mercedes Benz 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 Mercedes Benz will offset losses from the drop in Mercedes Benz's long position.NikolaCorp vs. Deere Company | NikolaCorp vs. Hyster Yale Materials Handling | NikolaCorp vs. Lion Electric Corp | NikolaCorp vs. Titan International |
Mercedes Benz vs. CDW Corp | Mercedes Benz vs. Arhaus Inc | Mercedes Benz vs. Valvoline | Mercedes Benz vs. Intchains Group Limited |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |