Correlation Between Li Auto and 90331HMS9
Specify exactly 2 symbols:
By analyzing existing cross correlation between Li Auto and U S BK, you can compare the effects of market volatilities on Li Auto and 90331HMS9 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 90331HMS9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Auto and 90331HMS9.
Diversification Opportunities for Li Auto and 90331HMS9
Good diversification
The 3 months correlation between Li Auto and 90331HMS9 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Li Auto and U S BK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 90331HMS9 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 90331HMS9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 90331HMS9 has no effect on the direction of Li Auto i.e., Li Auto and 90331HMS9 go up and down completely randomly.
Pair Corralation between Li Auto and 90331HMS9
Allowing for the 90-day total investment horizon Li Auto is expected to generate 12.23 times more return on investment than 90331HMS9. However, Li Auto is 12.23 times more volatile than U S BK. It trades about 0.09 of its potential returns per unit of risk. U S BK is currently generating about -0.12 per unit of risk. If you would invest 1,877 in Li Auto on September 4, 2024 and sell it today you would earn a total of 403.00 from holding Li Auto or generate 21.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.75% |
| Values | Daily Returns |
Li Auto vs. U S BK
Performance |
| Timeline |
| Li Auto |
| 90331HMS9 |
Li Auto and 90331HMS9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Auto and 90331HMS9
The main advantage of trading using opposite Li Auto and 90331HMS9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Auto position performs unexpectedly, 90331HMS9 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 90331HMS9 will offset losses from the drop in 90331HMS9's long position.The idea behind Li Auto and U S BK 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.| 90331HMS9 vs. U Power Limited | 90331HMS9 vs. Rivian Automotive | 90331HMS9 vs. Li Auto | 90331HMS9 vs. Dave Busters Entertainment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |