Correlation Between Hyliion Hldg and Teucrium Corn

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

Diversification Opportunities for Hyliion Hldg and Teucrium Corn

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Hyliion and Teucrium is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hyliion Hldg Corp and Teucrium Corn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teucrium Corn and Hyliion Hldg 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 Hyliion Hldg Corp are associated (or correlated) with Teucrium Corn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teucrium Corn has no effect on the direction of Hyliion Hldg i.e., Hyliion Hldg and Teucrium Corn go up and down completely randomly.

Pair Corralation between Hyliion Hldg and Teucrium Corn

Given the investment horizon of 90 days Hyliion Hldg Corp is expected to under-perform the Teucrium Corn. In addition to that, Hyliion Hldg is 2.69 times more volatile than Teucrium Corn. It trades about -0.21 of its total potential returns per unit of risk. Teucrium Corn is currently generating about -0.01 per unit of volatility. If you would invest  2,708  in Teucrium Corn on July 5, 2022 and sell it today you would lose (8.00)  from holding Teucrium Corn or give up 0.3% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Hyliion Hldg Corp  vs.  Teucrium Corn

 Performance (%) 
       Timeline  
Hyliion Hldg Corp 
Hyliion Performance
0 of 100
Over the last 90 days Hyliion Hldg Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in November 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Hyliion Price Channel

Teucrium Corn 
Teucrium Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Teucrium Corn are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Teucrium Corn disclosed solid returns over the last few months and may actually be approaching a breakup point.

Teucrium Price Channel

Hyliion Hldg and Teucrium Corn Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hyliion Hldg and Teucrium Corn

The main advantage of trading using opposite Hyliion Hldg and Teucrium Corn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyliion Hldg position performs unexpectedly, Teucrium Corn 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 Teucrium Corn will offset losses from the drop in Teucrium Corn's long position.
Hyliion Hldg vs. Amazon Inc
The idea behind Hyliion Hldg Corp and Teucrium Corn 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.
Teucrium Corn vs. Bank Of America
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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