Correlation Between ECARX Holdings and Service Team
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Service Team 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 Service Team 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 Service Team, you can compare the effects of market volatilities on ECARX Holdings and Service Team 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 Service Team. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Service Team.
Diversification Opportunities for ECARX Holdings and Service Team
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ECARX and Service is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Warrants and Service Team in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Team 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 Service Team. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Team has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Service Team go up and down completely randomly.
Pair Corralation between ECARX Holdings and Service Team
Assuming the 90 days horizon ECARX Holdings Warrants is expected to generate 2.14 times more return on investment than Service Team. However, ECARX Holdings is 2.14 times more volatile than Service Team. It trades about 0.09 of its potential returns per unit of risk. Service Team is currently generating about 0.04 per unit of risk. If you would invest 7.26 in ECARX Holdings Warrants on September 12, 2024 and sell it today you would lose (4.60) from holding ECARX Holdings Warrants or give up 63.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 66.6% |
| Values | Daily Returns |
ECARX Holdings Warrants vs. Service Team
Performance |
| Timeline |
| ECARX Holdings Warrants |
| Service Team |
ECARX Holdings and Service Team Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Service Team
The main advantage of trading using opposite ECARX Holdings and Service Team positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Service Team 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 Service Team will offset losses from the drop in Service Team's long position.| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
| Service Team vs. American Axle Manufacturing | Service Team vs. Modine Manufacturing | Service Team vs. Aeye Inc | Service Team vs. Marketing Worldwide |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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