Correlation Between Cenntro Electric and Electric Last
Can any of the company-specific risk be diversified away by investing in both Cenntro Electric and Electric Last 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 Cenntro Electric and Electric Last into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenntro Electric Group and Electric Last Mile, you can compare the effects of market volatilities on Cenntro Electric and Electric Last 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 Cenntro Electric with a short position of Electric Last. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenntro Electric and Electric Last.
Diversification Opportunities for Cenntro Electric and Electric Last
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cenntro and Electric is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cenntro Electric Group and Electric Last Mile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electric Last Mile and Cenntro Electric 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 Cenntro Electric Group are associated (or correlated) with Electric Last. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electric Last Mile has no effect on the direction of Cenntro Electric i.e., Cenntro Electric and Electric Last go up and down completely randomly.
Pair Corralation between Cenntro Electric and Electric Last
If you would invest 161.00 in Cenntro Electric Group on September 2, 2024 and sell it today you would lose (31.00) from holding Cenntro Electric Group or give up 19.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Cenntro Electric Group vs. Electric Last Mile
Performance |
| Timeline |
| Cenntro Electric |
| Electric Last Mile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cenntro Electric and Electric Last Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenntro Electric and Electric Last
The main advantage of trading using opposite Cenntro Electric and Electric Last positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenntro Electric position performs unexpectedly, Electric Last 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 Electric Last will offset losses from the drop in Electric Last's long position.| Cenntro Electric vs. Mullen Automotive | Cenntro Electric vs. Canoo Inc | Cenntro Electric vs. Hyzon Motors | Cenntro Electric vs. AYRO Inc |
| Electric Last vs. Faraday Future Intelligent | Electric Last vs. HYZON Motors | Electric Last vs. TMC the metals | Electric Last vs. Cardiff Lexington 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 the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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