Correlation Between ECARX Holdings and Marketing Worldwide
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Marketing Worldwide 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 Marketing Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECARX Holdings Warrants and Marketing Worldwide, you can compare the effects of market volatilities on ECARX Holdings and Marketing Worldwide 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 Marketing Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Marketing Worldwide.
Diversification Opportunities for ECARX Holdings and Marketing Worldwide
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ECARX and Marketing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Warrants and Marketing Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marketing Worldwide 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 Warrants are associated (or correlated) with Marketing Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marketing Worldwide has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Marketing Worldwide go up and down completely randomly.
Pair Corralation between ECARX Holdings and Marketing Worldwide
Assuming the 90 days horizon ECARX Holdings Warrants is expected to generate 0.46 times more return on investment than Marketing Worldwide. However, ECARX Holdings Warrants is 2.16 times less risky than Marketing Worldwide. It trades about 0.52 of its potential returns per unit of risk. Marketing Worldwide is currently generating about 0.14 per unit of risk. If you would invest 1.55 in ECARX Holdings Warrants on August 26, 2024 and sell it today you would earn a total of 0.94 from holding ECARX Holdings Warrants or generate 60.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.82% |
| Values | Daily Returns |
ECARX Holdings Warrants vs. Marketing Worldwide
Performance |
| Timeline |
| ECARX Holdings Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Marketing Worldwide |
ECARX Holdings and Marketing Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Marketing Worldwide
The main advantage of trading using opposite ECARX Holdings and Marketing Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Marketing Worldwide 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 Marketing Worldwide will offset losses from the drop in Marketing Worldwide's long position.The idea behind ECARX Holdings Warrants and Marketing Worldwide 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.| Marketing Worldwide vs. Allison Transmission Holdings | Marketing Worldwide vs. Luminar Technologies | Marketing Worldwide vs. Lear Corporation | Marketing Worldwide vs. BorgWarner |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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