Correlation Between Rivian Automotive and Intelligent Group
Can any of the company-specific risk be diversified away by investing in both Rivian Automotive and Intelligent Group 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 Rivian Automotive and Intelligent Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rivian Automotive and Intelligent Group Limited, you can compare the effects of market volatilities on Rivian Automotive and Intelligent Group 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 Rivian Automotive with a short position of Intelligent Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivian Automotive and Intelligent Group.
Diversification Opportunities for Rivian Automotive and Intelligent Group
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rivian and Intelligent is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive and Intelligent Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Group and Rivian Automotive 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 Rivian Automotive are associated (or correlated) with Intelligent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Group has no effect on the direction of Rivian Automotive i.e., Rivian Automotive and Intelligent Group go up and down completely randomly.
Pair Corralation between Rivian Automotive and Intelligent Group
Given the investment horizon of 90 days Rivian Automotive is expected to generate 2.1 times more return on investment than Intelligent Group. However, Rivian Automotive is 2.1 times more volatile than Intelligent Group Limited. It trades about 0.08 of its potential returns per unit of risk. Intelligent Group Limited is currently generating about -0.07 per unit of risk. If you would invest 1,086 in Rivian Automotive on August 28, 2024 and sell it today you would earn a total of 74.00 from holding Rivian Automotive or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rivian Automotive vs. Intelligent Group Limited
Performance |
| Timeline |
| Rivian Automotive |
| Intelligent Group |
Rivian Automotive and Intelligent Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rivian Automotive and Intelligent Group
The main advantage of trading using opposite Rivian Automotive and Intelligent Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive position performs unexpectedly, Intelligent Group 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 Intelligent Group will offset losses from the drop in Intelligent Group's long position.| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Lucid Group | Rivian Automotive vs. Tesla Inc | Rivian Automotive vs. Mullen Automotive |
| Intelligent Group vs. Ambev SA ADR | Intelligent Group vs. Dana Inc | Intelligent Group vs. Visteon Corp | Intelligent Group vs. Rivian Automotive |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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