Correlation Between ECARX Holdings and Mobileye Global
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Mobileye Global 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 Mobileye Global 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 Mobileye Global Class, you can compare the effects of market volatilities on ECARX Holdings and Mobileye Global 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 Mobileye Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Mobileye Global.
Diversification Opportunities for ECARX Holdings and Mobileye Global
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ECARX and Mobileye is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Class and Mobileye Global Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileye Global Class 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 Mobileye Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobileye Global Class has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Mobileye Global go up and down completely randomly.
Pair Corralation between ECARX Holdings and Mobileye Global
Considering the 90-day investment horizon ECARX Holdings Class is expected to generate 1.05 times more return on investment than Mobileye Global. However, ECARX Holdings is 1.05 times more volatile than Mobileye Global Class. It trades about 0.08 of its potential returns per unit of risk. Mobileye Global Class is currently generating about -0.05 per unit of risk. If you would invest 116.00 in ECARX Holdings Class on August 23, 2024 and sell it today you would earn a total of 49.00 from holding ECARX Holdings Class or generate 42.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECARX Holdings Class vs. Mobileye Global Class
Performance |
| Timeline |
| ECARX Holdings Class |
| Mobileye Global Class |
ECARX Holdings and Mobileye Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Mobileye Global
The main advantage of trading using opposite ECARX Holdings and Mobileye Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Mobileye Global 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 Mobileye Global will offset losses from the drop in Mobileye Global's long position.| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
| Mobileye Global vs. Quantumscape Corp | Mobileye Global vs. Innoviz Technologies | Mobileye Global vs. Aeva Technologies | Mobileye Global vs. Hyliion Holdings 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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