Correlation Between Cenntro Electric and Electrameccanica
Can any of the company-specific risk be diversified away by investing in both Cenntro Electric and Electrameccanica 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 Electrameccanica 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 Electrameccanica Vehicles Corp, you can compare the effects of market volatilities on Cenntro Electric and Electrameccanica 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 Electrameccanica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenntro Electric and Electrameccanica.
Diversification Opportunities for Cenntro Electric and Electrameccanica
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cenntro and Electrameccanica is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cenntro Electric Group and Electrameccanica Vehicles Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrameccanica Veh 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 Electrameccanica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrameccanica Veh has no effect on the direction of Cenntro Electric i.e., Cenntro Electric and Electrameccanica go up and down completely randomly.
Pair Corralation between Cenntro Electric and Electrameccanica
If you would invest 119.00 in Cenntro Electric Group on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Cenntro Electric Group or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Cenntro Electric Group vs. Electrameccanica Vehicles Corp
Performance |
| Timeline |
| Cenntro Electric |
| Electrameccanica Veh |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cenntro Electric and Electrameccanica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenntro Electric and Electrameccanica
The main advantage of trading using opposite Cenntro Electric and Electrameccanica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenntro Electric position performs unexpectedly, Electrameccanica 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 Electrameccanica will offset losses from the drop in Electrameccanica's long position.| Cenntro Electric vs. Mullen Automotive | Cenntro Electric vs. Canoo Inc | Cenntro Electric vs. Hyzon Motors | Cenntro Electric vs. AYRO Inc |
| Electrameccanica vs. GreenPower Motor | Electrameccanica vs. Workhorse Group | Electrameccanica vs. Cenntro Electric Group | Electrameccanica vs. Volcon Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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