Correlation Between Gorilla Technology and ECARX Holdings
Can any of the company-specific risk be diversified away by investing in both Gorilla Technology and ECARX Holdings 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 Gorilla Technology and ECARX Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gorilla Technology Group and ECARX Holdings Class, you can compare the effects of market volatilities on Gorilla Technology and ECARX Holdings 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 Gorilla Technology with a short position of ECARX Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gorilla Technology and ECARX Holdings.
Diversification Opportunities for Gorilla Technology and ECARX Holdings
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gorilla and ECARX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gorilla Technology Group and ECARX Holdings Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECARX Holdings Class and Gorilla 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 Gorilla Technology Group are associated (or correlated) with ECARX Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECARX Holdings Class has no effect on the direction of Gorilla Technology i.e., Gorilla Technology and ECARX Holdings go up and down completely randomly.
Pair Corralation between Gorilla Technology and ECARX Holdings
Assuming the 90 days horizon Gorilla Technology Group is expected to generate 2.3 times more return on investment than ECARX Holdings. However, Gorilla Technology is 2.3 times more volatile than ECARX Holdings Class. It trades about 0.04 of its potential returns per unit of risk. ECARX Holdings Class is currently generating about -0.04 per unit of risk. If you would invest 15.00 in Gorilla Technology Group on September 2, 2024 and sell it today you would lose (8.62) from holding Gorilla Technology Group or give up 57.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Gorilla Technology Group vs. ECARX Holdings Class
Performance |
| Timeline |
| Gorilla Technology |
| ECARX Holdings Class |
Gorilla Technology and ECARX Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gorilla Technology and ECARX Holdings
The main advantage of trading using opposite Gorilla Technology and ECARX Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gorilla Technology position performs unexpectedly, ECARX Holdings 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 ECARX Holdings will offset losses from the drop in ECARX Holdings' long position.The idea behind Gorilla Technology Group and ECARX Holdings Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| 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 | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |