Correlation Between ECARX Holdings and Stoneridge
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Stoneridge 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 Stoneridge 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 Stoneridge, you can compare the effects of market volatilities on ECARX Holdings and Stoneridge 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 Stoneridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Stoneridge.
Diversification Opportunities for ECARX Holdings and Stoneridge
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ECARX and Stoneridge is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Warrants and Stoneridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoneridge 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 Stoneridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoneridge has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Stoneridge go up and down completely randomly.
Pair Corralation between ECARX Holdings and Stoneridge
Assuming the 90 days horizon ECARX Holdings Warrants is expected to generate 4.01 times more return on investment than Stoneridge. However, ECARX Holdings is 4.01 times more volatile than Stoneridge. It trades about 0.28 of its potential returns per unit of risk. Stoneridge is currently generating about -0.24 per unit of risk. If you would invest 4.00 in ECARX Holdings Warrants on November 28, 2024 and sell it today you would earn a total of 4.00 from holding ECARX Holdings Warrants or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
ECARX Holdings Warrants vs. Stoneridge
Performance |
| Timeline |
| ECARX Holdings Warrants |
| Stoneridge |
ECARX Holdings and Stoneridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Stoneridge
The main advantage of trading using opposite ECARX Holdings and Stoneridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Stoneridge 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 Stoneridge will offset losses from the drop in Stoneridge's long position.| ECARX Holdings vs. ECARX Holdings Class | ECARX Holdings vs. Bridger Aerospace Group | ECARX Holdings vs. NewAmsterdam Pharma | ECARX Holdings vs. Gorilla Technology Group |
| Stoneridge vs. Monro Muffler Brake | Stoneridge vs. Motorcar Parts of | Stoneridge vs. Standard Motor Products | Stoneridge vs. Douglas Dynamics |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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