Correlation Between Li Auto and Spectaire Holdings
Can any of the company-specific risk be diversified away by investing in both Li Auto and Spectaire 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 Li Auto and Spectaire Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Li Auto and Spectaire Holdings, you can compare the effects of market volatilities on Li Auto and Spectaire 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 Li Auto with a short position of Spectaire Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Auto and Spectaire Holdings.
Diversification Opportunities for Li Auto and Spectaire Holdings
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Li Auto and Spectaire is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Li Auto and Spectaire Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectaire Holdings 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 Spectaire Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectaire Holdings has no effect on the direction of Li Auto i.e., Li Auto and Spectaire Holdings go up and down completely randomly.
Pair Corralation between Li Auto and Spectaire Holdings
If you would invest 8.00 in Spectaire Holdings on September 6, 2024 and sell it today you would earn a total of 0.00 from holding Spectaire Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Li Auto vs. Spectaire Holdings
Performance |
| Timeline |
| Li Auto |
| Spectaire Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Li Auto and Spectaire Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Auto and Spectaire Holdings
The main advantage of trading using opposite Li Auto and Spectaire Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Auto position performs unexpectedly, Spectaire 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 Spectaire Holdings will offset losses from the drop in Spectaire Holdings' long position.| Li Auto vs. Volkswagen AG Pref | Li Auto vs. Volkswagen AG 110 | Li Auto vs. Porsche Automobil Holding | Li Auto vs. Bayerische Motoren Werke |
| Spectaire Holdings vs. Molson Coors Brewing | Spectaire Holdings vs. The Coca Cola | Spectaire Holdings vs. Stratasys | Spectaire Holdings vs. Noble plc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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