The correlation of NikolaCorp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NikolaCorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NikolaCorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NikolaCorp. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Very weak diversification
The correlation between NikolaCorp and NYA is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NikolaCorp and NYA in the same portfolio, assuming nothing else is changed.
The ability to find closely correlated positions to NikolaCorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NikolaCorp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NikolaCorp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NikolaCorp to buy it.
Moving together with NikolaCorp Stock
Moving against NikolaCorp Stock
Related Correlations Analysis
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Risk-Adjusted IndicatorsThere is a big difference between NikolaCorp Stock performing well and NikolaCorp Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze NikolaCorp's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Be your own money managerOur tools can tell you how much better you can do entering a position in NikolaCorp without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
NikolaCorp Corporate Management
Elected by the shareholders, the NikolaCorp's board of directors comprises two types of representatives: NikolaCorp inside directors who are chosen from within the company, and outside directors, selected externally and held independent of NikolaCorp. The board's role is to monitor NikolaCorp's management team and ensure that shareholders' interests are well served. NikolaCorp's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, NikolaCorp's outside directors are responsible for providing unbiased perspectives on the board's policies.
Already Invested in NikolaCorp?
The danger of trading NikolaCorp is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of NikolaCorp is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than NikolaCorp. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile NikolaCorp is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.When determining whether NikolaCorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NikolaCorp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nikolacorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nikolacorp Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NikolaCorp. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.For information on how to trade NikolaCorp Stock refer to our How to Trade NikolaCorp Stock guide.You can also try the Stocks Directory module to find actively traded stocks across global markets.
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When running NikolaCorp's price analysis, check to measure NikolaCorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NikolaCorp is operating at the current time. Most of NikolaCorp's value examination focuses on studying past and present price action to predict the probability of NikolaCorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NikolaCorp's price. Additionally, you may evaluate how the addition of NikolaCorp to your portfolios can decrease your overall portfolio volatility.
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Is NikolaCorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NikolaCorp. If investors know NikolaCorp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NikolaCorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Revenue Per Share
Quarterly Revenue Growth
Return On Assets
Return On Equity
The market value of NikolaCorp is measured differently than its book value, which is the value of NikolaCorp that is recorded on the company's balance sheet. Investors also form their own opinion of NikolaCorp's value that differs from its market value or its book value, called intrinsic value, which is NikolaCorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NikolaCorp's market value can be influenced by many factors that don't directly affect NikolaCorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NikolaCorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if NikolaCorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NikolaCorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.