Correlation Between Harley Davidson and Helbiz

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Can any of the company-specific risk be diversified away by investing in both Harley Davidson and Helbiz 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 Harley Davidson and Helbiz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harley-Davidson and Helbiz Inc, you can compare the effects of market volatilities on Harley Davidson and Helbiz 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 Harley Davidson with a short position of Helbiz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harley Davidson and Helbiz.

Diversification Opportunities for Harley Davidson and Helbiz

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Harley and Helbiz is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Harley-Davidson and Helbiz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helbiz Inc and Harley Davidson 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 Harley-Davidson are associated (or correlated) with Helbiz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helbiz Inc has no effect on the direction of Harley Davidson i.e., Harley Davidson and Helbiz go up and down completely randomly.

Pair Corralation between Harley Davidson and Helbiz

Considering the 90-day investment horizon Harley-Davidson is expected to generate 0.41 times more return on investment than Helbiz. However, Harley-Davidson is 2.46 times less risky than Helbiz. It trades about -0.12 of its potential returns per unit of risk. Helbiz Inc is currently generating about -0.42 per unit of risk. If you would invest  3,999  in Harley-Davidson on June 27, 2022 and sell it today you would lose (245.00)  from holding Harley-Davidson or give up 6.13% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Harley-Davidson  vs.  Helbiz Inc

 Performance (%) 
       Timeline  
Harley-Davidson 
Harley Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Harley-Davidson are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish basic indicators, Harley Davidson exhibited solid returns over the last few months and may actually be approaching a breakup point.

Harley Price Channel

Helbiz Inc 
Helbiz Performance
0 of 100
Over the last 90 days Helbiz Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Helbiz is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Helbiz Price Channel

Harley Davidson and Helbiz Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Harley Davidson and Helbiz

The main advantage of trading using opposite Harley Davidson and Helbiz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harley Davidson position performs unexpectedly, Helbiz 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 Helbiz will offset losses from the drop in Helbiz's long position.
Harley Davidson vs. Sigma Lithium Corp
The idea behind Harley-Davidson and Helbiz Inc 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.
Helbiz vs. Sigma Lithium Corp
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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