Correlation Between Optec International and ECARX Holdings
Can any of the company-specific risk be diversified away by investing in both Optec International and ECARX 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 Optec International and ECARX Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optec International and ECARX Holdings Warrants, you can compare the effects of market volatilities on Optec International and ECARX 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 Optec International with a short position of ECARX Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optec International and ECARX Holdings.
Diversification Opportunities for Optec International and ECARX Holdings
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optec and ECARX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Optec International and ECARX Holdings Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECARX Holdings Warrants and Optec International 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 Optec International are associated (or correlated) with ECARX Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECARX Holdings Warrants has no effect on the direction of Optec International i.e., Optec International and ECARX Holdings go up and down completely randomly.
Pair Corralation between Optec International and ECARX Holdings
If you would invest 2.02 in ECARX Holdings Warrants on August 30, 2024 and sell it today you would earn a total of 0.03 from holding ECARX Holdings Warrants or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 14.29% |
| Values | Daily Returns |
Optec International vs. ECARX Holdings Warrants
Performance |
| Timeline |
| Optec International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ECARX Holdings Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Optec International and ECARX Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optec International and ECARX Holdings
The main advantage of trading using opposite Optec International and ECARX Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optec International position performs unexpectedly, ECARX 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 ECARX Holdings will offset losses from the drop in ECARX Holdings' long position.| Optec International vs. Service Team | Optec International vs. American Axle Manufacturing | Optec International vs. Modine Manufacturing | Optec International vs. Aeye Inc |
| ECARX Holdings vs. ECARX Holdings Class | ECARX Holdings vs. Bridger Aerospace Group | ECARX Holdings vs. NewAmsterdam Pharma | ECARX Holdings vs. Gorilla Technology Group |
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.
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