Correlation Between ECARX Holdings and Unique Fabricating
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Unique Fabricating 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 Unique Fabricating 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 Unique Fabricating, you can compare the effects of market volatilities on ECARX Holdings and Unique Fabricating 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 Unique Fabricating. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Unique Fabricating.
Diversification Opportunities for ECARX Holdings and Unique Fabricating
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ECARX and Unique is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Class and Unique Fabricating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unique Fabricating 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 Unique Fabricating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unique Fabricating has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Unique Fabricating go up and down completely randomly.
Pair Corralation between ECARX Holdings and Unique Fabricating
If you would invest 182.00 in ECARX Holdings Class on September 5, 2024 and sell it today you would earn a total of 8.00 from holding ECARX Holdings Class or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ECARX Holdings Class vs. Unique Fabricating
Performance |
| Timeline |
| ECARX Holdings Class |
| Unique Fabricating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ECARX Holdings and Unique Fabricating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Unique Fabricating
The main advantage of trading using opposite ECARX Holdings and Unique Fabricating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Unique Fabricating 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 Unique Fabricating will offset losses from the drop in Unique Fabricating's long position.| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
| Unique Fabricating vs. Aeva Technologies | Unique Fabricating vs. Innoviz Technologies | Unique Fabricating vs. Hesai Group American | Unique Fabricating vs. Luminar Technologies |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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