Correlation Between Nxu and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both Nxu and CBAK Energy 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 Nxu and CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nxu Inc and CBAK Energy Technology, you can compare the effects of market volatilities on Nxu and CBAK Energy 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 Nxu with a short position of CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nxu and CBAK Energy.
Diversification Opportunities for Nxu and CBAK Energy
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nxu and CBAK is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nxu Inc and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology and Nxu 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 Nxu Inc are associated (or correlated) with CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Nxu i.e., Nxu and CBAK Energy go up and down completely randomly.
Pair Corralation between Nxu and CBAK Energy
Considering the 90-day investment horizon Nxu Inc is expected to under-perform the CBAK Energy. In addition to that, Nxu is 2.77 times more volatile than CBAK Energy Technology. It trades about -0.22 of its total potential returns per unit of risk. CBAK Energy Technology is currently generating about -0.16 per unit of volatility. If you would invest 110.00 in CBAK Energy Technology on August 31, 2024 and sell it today you would lose (16.00) from holding CBAK Energy Technology or give up 14.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nxu Inc vs. CBAK Energy Technology
Performance |
| Timeline |
| Nxu Inc |
| CBAK Energy Technology |
Nxu and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nxu and CBAK Energy
The main advantage of trading using opposite Nxu and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nxu position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| Nxu vs. Chardan NexTech Acquisition | Nxu vs. Polar Power | Nxu vs. Eos Energy Enterprises | Nxu vs. Sunrise New Energy |
| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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