Correlation Between Li Auto and Black Spade
Can any of the company-specific risk be diversified away by investing in both Li Auto and Black Spade 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 Li Auto and Black Spade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Li Auto and Black Spade Acquisition, you can compare the effects of market volatilities on Li Auto and Black Spade 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 Li Auto with a short position of Black Spade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Auto and Black Spade.
Diversification Opportunities for Li Auto and Black Spade
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Li Auto and Black is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Li Auto and Black Spade Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Spade Acquisition and Li Auto 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 Li Auto are associated (or correlated) with Black Spade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Spade Acquisition has no effect on the direction of Li Auto i.e., Li Auto and Black Spade go up and down completely randomly.
Pair Corralation between Li Auto and Black Spade
If you would invest 2,220 in Li Auto on October 14, 2024 and sell it today you would earn a total of 4.00 from holding Li Auto or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Li Auto vs. Black Spade Acquisition
Performance |
| Timeline |
| Li Auto |
| Black Spade Acquisition |
Li Auto and Black Spade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Auto and Black Spade
The main advantage of trading using opposite Li Auto and Black Spade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Auto position performs unexpectedly, Black Spade 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 Black Spade will offset losses from the drop in Black Spade's long position.| Li Auto vs. Canoo Inc | Li Auto vs. Aquagold International | Li Auto vs. Morningstar Unconstrained Allocation | Li Auto vs. Thrivent High Yield |
| Black Spade vs. Distoken Acquisition | Black Spade vs. Voyager Acquisition Corp | Black Spade vs. dMY Squared Technology | Black Spade vs. CO2 Energy Transition |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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