Correlation Between Lotus Technology and ZEEKR Intelligent
Can any of the company-specific risk be diversified away by investing in both Lotus Technology 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 Lotus Technology and ZEEKR Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotus Technology Warrants and ZEEKR Intelligent Technology, you can compare the effects of market volatilities on Lotus Technology 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 Lotus Technology with a short position of ZEEKR Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Technology and ZEEKR Intelligent.
Diversification Opportunities for Lotus Technology and ZEEKR Intelligent
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lotus and ZEEKR is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Technology Warrants and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent and Lotus Technology 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 Lotus Technology Warrants 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 Lotus Technology i.e., Lotus Technology and ZEEKR Intelligent go up and down completely randomly.
Pair Corralation between Lotus Technology and ZEEKR Intelligent
Assuming the 90 days horizon Lotus Technology is expected to generate 1.44 times less return on investment than ZEEKR Intelligent. In addition to that, Lotus Technology is 2.34 times more volatile than ZEEKR Intelligent Technology. It trades about 0.01 of its total potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about 0.04 per unit of volatility. If you would invest 2,100 in ZEEKR Intelligent Technology on August 31, 2024 and sell it today you would earn a total of 241.00 from holding ZEEKR Intelligent Technology or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.7% |
| Values | Daily Returns |
Lotus Technology Warrants vs. ZEEKR Intelligent Technology
Performance |
| Timeline |
| Lotus Technology Warrants |
| ZEEKR Intelligent |
Lotus Technology and ZEEKR Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Technology and ZEEKR Intelligent
The main advantage of trading using opposite Lotus Technology and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Technology 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.| Lotus Technology vs. ZEEKR Intelligent Technology | Lotus Technology vs. Volcon Inc | Lotus Technology vs. ECD Automotive Design | Lotus Technology vs. Ford Motor |
| ZEEKR Intelligent vs. NETGEAR | ZEEKR Intelligent vs. Freedom Internet Group | ZEEKR Intelligent vs. Sphere Entertainment Co | ZEEKR Intelligent vs. WiMi Hologram Cloud |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |