Correlation Between ECARX Holdings and Holley
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Holley 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 ECARX Holdings and Holley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECARX Holdings Class and Holley Inc, you can compare the effects of market volatilities on ECARX Holdings and Holley 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 ECARX Holdings with a short position of Holley. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Holley.
Diversification Opportunities for ECARX Holdings and Holley
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ECARX and Holley is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Class and Holley Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holley Inc and ECARX Holdings 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 ECARX Holdings Class are associated (or correlated) with Holley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holley Inc has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Holley go up and down completely randomly.
Pair Corralation between ECARX Holdings and Holley
Considering the 90-day investment horizon ECARX Holdings Class is expected to under-perform the Holley. In addition to that, ECARX Holdings is 1.63 times more volatile than Holley Inc. It trades about -0.13 of its total potential returns per unit of risk. Holley Inc is currently generating about -0.09 per unit of volatility. If you would invest 280.00 in Holley Inc on August 23, 2024 and sell it today you would lose (15.00) from holding Holley Inc or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECARX Holdings Class vs. Holley Inc
Performance |
| Timeline |
| ECARX Holdings Class |
| Holley Inc |
ECARX Holdings and Holley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Holley
The main advantage of trading using opposite ECARX Holdings and Holley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Holley 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 Holley will offset losses from the drop in Holley's long position.| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
| Holley vs. Dorman Products | Holley vs. Monro Muffler Brake | Holley vs. Standard Motor Products | Holley vs. Stoneridge |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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