Correlation Between Ebet and ZKH Group
Can any of the company-specific risk be diversified away by investing in both Ebet and ZKH Group 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 Ebet and ZKH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebet Inc and ZKH Group Limited, you can compare the effects of market volatilities on Ebet and ZKH Group 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 Ebet with a short position of ZKH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebet and ZKH Group.
Diversification Opportunities for Ebet and ZKH Group
Pay attention - limited upside
The 3 months correlation between Ebet and ZKH is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ebet Inc and ZKH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKH Group Limited and Ebet 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 Ebet Inc are associated (or correlated) with ZKH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKH Group Limited has no effect on the direction of Ebet i.e., Ebet and ZKH Group go up and down completely randomly.
Pair Corralation between Ebet and ZKH Group
Given the investment horizon of 90 days Ebet Inc is expected to under-perform the ZKH Group. In addition to that, Ebet is 1.24 times more volatile than ZKH Group Limited. It trades about -0.12 of its total potential returns per unit of risk. ZKH Group Limited is currently generating about -0.06 per unit of volatility. If you would invest 1,550 in ZKH Group Limited on August 31, 2024 and sell it today you would lose (1,208) from holding ZKH Group Limited or give up 77.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 63.9% |
| Values | Daily Returns |
Ebet Inc vs. ZKH Group Limited
Performance |
| Timeline |
| Ebet Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ZKH Group Limited |
Ebet and ZKH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebet and ZKH Group
The main advantage of trading using opposite Ebet and ZKH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebet position performs unexpectedly, ZKH Group 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 ZKH Group will offset losses from the drop in ZKH Group's long position.| Ebet vs. PointsBet Holdings Limited | Ebet vs. Gan | Ebet vs. Rush Street Interactive | Ebet vs. Lottery, Warrants |
| ZKH Group vs. NETGEAR | ZKH Group vs. Coupang LLC | ZKH Group vs. BCE Inc | ZKH Group vs. Meiwu Technology Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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