Correlation Between EV Technology and Cenntro Electric
Can any of the company-specific risk be diversified away by investing in both EV Technology and Cenntro Electric 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 EV Technology and Cenntro Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EV Technology Group and Cenntro Electric Group, you can compare the effects of market volatilities on EV Technology and Cenntro Electric 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 EV Technology with a short position of Cenntro Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of EV Technology and Cenntro Electric.
Diversification Opportunities for EV Technology and Cenntro Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EVTGF and Cenntro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EV Technology Group and Cenntro Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenntro Electric and EV Technology 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 EV Technology Group are associated (or correlated) with Cenntro Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenntro Electric has no effect on the direction of EV Technology i.e., EV Technology and Cenntro Electric go up and down completely randomly.
Pair Corralation between EV Technology and Cenntro Electric
If you would invest 0.41 in EV Technology Group on August 31, 2024 and sell it today you would earn a total of 0.00 from holding EV Technology Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EV Technology Group vs. Cenntro Electric Group
Performance |
| Timeline |
| EV Technology Group |
| Cenntro Electric |
EV Technology and Cenntro Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EV Technology and Cenntro Electric
The main advantage of trading using opposite EV Technology and Cenntro Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EV Technology position performs unexpectedly, Cenntro Electric 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 Cenntro Electric will offset losses from the drop in Cenntro Electric's long position.| EV Technology vs. Genesis Electronics Group | EV Technology vs. Phoenix Motor Common | EV Technology vs. AYRO Inc | EV Technology vs. Mullen Automotive |
| Cenntro Electric vs. Mullen Automotive | Cenntro Electric vs. Canoo Inc | Cenntro Electric vs. Hyzon Motors | Cenntro Electric vs. AYRO Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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