Correlation Between Floor Decor and Cenntro Electric
Can any of the company-specific risk be diversified away by investing in both Floor Decor 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 Floor Decor and Cenntro Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Floor Decor Holdings and Cenntro Electric Group, you can compare the effects of market volatilities on Floor Decor 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 Floor Decor with a short position of Cenntro Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Floor Decor and Cenntro Electric.
Diversification Opportunities for Floor Decor and Cenntro Electric
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Floor and Cenntro is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Floor Decor Holdings and Cenntro Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenntro Electric and Floor Decor 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 Floor Decor Holdings 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 Floor Decor i.e., Floor Decor and Cenntro Electric go up and down completely randomly.
Pair Corralation between Floor Decor and Cenntro Electric
Considering the 90-day investment horizon Floor Decor Holdings is expected to generate 1.04 times more return on investment than Cenntro Electric. However, Floor Decor is 1.04 times more volatile than Cenntro Electric Group. It trades about -0.14 of its potential returns per unit of risk. Cenntro Electric Group is currently generating about -0.27 per unit of risk. If you would invest 8,936 in Floor Decor Holdings on January 11, 2025 and sell it today you would lose (1,432) from holding Floor Decor Holdings or give up 16.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Floor Decor Holdings vs. Cenntro Electric Group
Performance |
| Timeline |
| Floor Decor Holdings |
| Cenntro Electric |
Floor Decor and Cenntro Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Floor Decor and Cenntro Electric
The main advantage of trading using opposite Floor Decor and Cenntro Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Floor Decor 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.| Floor Decor vs. Arhaus Inc | Floor Decor vs. Live Ventures | Floor Decor vs. Haverty Furniture Companies | Floor Decor vs. Haverty Furniture Companies |
| Cenntro Electric vs. Mullen Automotive | Cenntro Electric vs. AYRO Inc | Cenntro Electric vs. Workhorse Group | Cenntro Electric vs. GreenPower Motor |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |