Correlation Between Li Auto and Where Food
Can any of the company-specific risk be diversified away by investing in both Li Auto and Where Food 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 Where Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Li Auto and Where Food Comes, you can compare the effects of market volatilities on Li Auto and Where Food 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 Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Auto and Where Food.
Diversification Opportunities for Li Auto and Where Food
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Li Auto and Where is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Li Auto and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes 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 Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of Li Auto i.e., Li Auto and Where Food go up and down completely randomly.
Pair Corralation between Li Auto and Where Food
Allowing for the 90-day total investment horizon Li Auto is expected to under-perform the Where Food. In addition to that, Li Auto is 1.65 times more volatile than Where Food Comes. It trades about -0.02 of its total potential returns per unit of risk. Where Food Comes is currently generating about 0.01 per unit of volatility. If you would invest 1,357 in Where Food Comes on September 3, 2024 and sell it today you would lose (60.00) from holding Where Food Comes or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Li Auto vs. Where Food Comes
Performance |
| Timeline |
| Li Auto |
| Where Food Comes |
Li Auto and Where Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Auto and Where Food
The main advantage of trading using opposite Li Auto and Where Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Auto position performs unexpectedly, Where Food 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 Where Food will offset losses from the drop in Where Food's long position.| Li Auto vs. GreenPower Motor | Li Auto vs. ZEEKR Intelligent Technology | Li Auto vs. Volcon Inc | Li Auto vs. Ford Motor |
| Where Food vs. Issuer Direct Corp | Where Food vs. Smith Midland Corp | Where Food vs. Bm Technologies | Where Food vs. 1StdibsCom |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |