Correlation Between ECARX Holdings and Volcon
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and Volcon 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 Volcon 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 Volcon Inc, you can compare the effects of market volatilities on ECARX Holdings and Volcon 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 Volcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Volcon.
Diversification Opportunities for ECARX Holdings and Volcon
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ECARX and Volcon is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Warrants and Volcon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcon Inc 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 Volcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcon Inc has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Volcon go up and down completely randomly.
Pair Corralation between ECARX Holdings and Volcon
Assuming the 90 days horizon ECARX Holdings Warrants is expected to generate 1.87 times more return on investment than Volcon. However, ECARX Holdings is 1.87 times more volatile than Volcon Inc. It trades about 0.18 of its potential returns per unit of risk. Volcon Inc is currently generating about -0.54 per unit of risk. If you would invest 5.60 in ECARX Holdings Warrants on December 2, 2024 and sell it today you would earn a total of 2.40 from holding ECARX Holdings Warrants or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
ECARX Holdings Warrants vs. Volcon Inc
Performance |
| Timeline |
| ECARX Holdings Warrants |
| Volcon Inc |
ECARX Holdings and Volcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and Volcon
The main advantage of trading using opposite ECARX Holdings and Volcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, Volcon 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 Volcon will offset losses from the drop in Volcon'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 |
| Volcon vs. AYRO Inc | ||
| Volcon vs. Workhorse Group | ||
| Volcon vs. GreenPower Motor | ||
| Volcon vs. Cenntro Electric Group |
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.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |