Correlation Between ICU Medical and ZEEKR Intelligent
Can any of the company-specific risk be diversified away by investing in both ICU Medical and ZEEKR Intelligent 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 ICU Medical and ZEEKR Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and ZEEKR Intelligent Technology, you can compare the effects of market volatilities on ICU Medical and ZEEKR Intelligent 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 ICU Medical with a short position of ZEEKR Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and ZEEKR Intelligent.
Diversification Opportunities for ICU Medical and ZEEKR Intelligent
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ICU and ZEEKR is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent and ICU Medical 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 ICU Medical are associated (or correlated) with ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of ICU Medical i.e., ICU Medical and ZEEKR Intelligent go up and down completely randomly.
Pair Corralation between ICU Medical and ZEEKR Intelligent
Given the investment horizon of 90 days ICU Medical is expected to under-perform the ZEEKR Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, ICU Medical is 4.2 times less risky than ZEEKR Intelligent. The stock trades about -0.09 of its potential returns per unit of risk. The ZEEKR Intelligent Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,511 in ZEEKR Intelligent Technology on September 1, 2024 and sell it today you would lose (168.00) from holding ZEEKR Intelligent Technology or give up 6.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. ZEEKR Intelligent Technology
Performance |
| Timeline |
| ICU Medical |
| ZEEKR Intelligent |
ICU Medical and ZEEKR Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and ZEEKR Intelligent
The main advantage of trading using opposite ICU Medical and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, ZEEKR Intelligent 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 ZEEKR Intelligent will offset losses from the drop in ZEEKR Intelligent's long position.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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