Correlation Between EZGO Technologies and Micromobility
Can any of the company-specific risk be diversified away by investing in both EZGO Technologies and Micromobility 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 EZGO Technologies and Micromobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EZGO Technologies and Micromobility, you can compare the effects of market volatilities on EZGO Technologies and Micromobility 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 EZGO Technologies with a short position of Micromobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZGO Technologies and Micromobility.
Diversification Opportunities for EZGO Technologies and Micromobility
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EZGO and Micromobility is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding EZGO Technologies and Micromobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micromobility and EZGO Technologies 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 EZGO Technologies are associated (or correlated) with Micromobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micromobility has no effect on the direction of EZGO Technologies i.e., EZGO Technologies and Micromobility go up and down completely randomly.
Pair Corralation between EZGO Technologies and Micromobility
If you would invest 8.89 in Micromobility on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Micromobility or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.26% |
| Values | Daily Returns |
EZGO Technologies vs. Micromobility
Performance |
| Timeline |
| EZGO Technologies |
| Micromobility |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EZGO Technologies and Micromobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EZGO Technologies and Micromobility
The main advantage of trading using opposite EZGO Technologies and Micromobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZGO Technologies position performs unexpectedly, Micromobility 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 Micromobility will offset losses from the drop in Micromobility's long position.| EZGO Technologies vs. Vision Marine Technologies | EZGO Technologies vs. Marine Products | EZGO Technologies vs. Thor Industries | EZGO Technologies vs. BRP Inc |
| Micromobility vs. Discover Financial Services | Micromobility vs. Bankwell Financial Group | Micromobility vs. Zijin Mining Group | Micromobility vs. Insteel Industries |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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