Correlation Between ECARX Holdings and Niu Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Niu Technologies 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 Niu Technologies 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 Niu Technologies, you can compare the effects of market volatilities on ECARX Holdings and Niu Technologies 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 Niu Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Niu Technologies.

Diversification Opportunities for ECARX Holdings and Niu Technologies

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between ECARX and Niu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Class and Niu Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies 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 Niu Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niu Technologies has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Niu Technologies go up and down completely randomly.

Pair Corralation between ECARX Holdings and Niu Technologies

Considering the 90-day investment horizon ECARX Holdings Class is expected to under-perform the Niu Technologies. In addition to that, ECARX Holdings is 1.6 times more volatile than Niu Technologies. It trades about -0.02 of its total potential returns per unit of risk. Niu Technologies is currently generating about -0.02 per unit of volatility. If you would invest  505.00  in Niu Technologies on August 27, 2024 and sell it today you would lose (320.00) from holding Niu Technologies or give up 63.37% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

ECARX Holdings Class  vs.  Niu Technologies

 Performance 
       Timeline  
ECARX Holdings Class 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ECARX Holdings Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, ECARX Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Niu Technologies 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Niu Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal forward indicators, Niu Technologies may actually be approaching a critical reversion point that can send shares even higher in December 2024.

ECARX Holdings and Niu Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ECARX Holdings and Niu Technologies

The main advantage of trading using opposite ECARX Holdings and Niu Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Niu Technologies 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 Niu Technologies will offset losses from the drop in Niu Technologies' long position.
The idea behind ECARX Holdings Class and Niu Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Commodity Directory
Find actively traded commodities issued by global exchanges
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years