Correlation Between Unique Fabricating and ECARX Holdings
Can any of the company-specific risk be diversified away by investing in both Unique Fabricating 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 Unique Fabricating and ECARX Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unique Fabricating and ECARX Holdings Class, you can compare the effects of market volatilities on Unique Fabricating 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 Unique Fabricating with a short position of ECARX Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unique Fabricating and ECARX Holdings.
Diversification Opportunities for Unique Fabricating and ECARX Holdings
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Unique and ECARX is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Unique Fabricating and ECARX Holdings Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECARX Holdings Class and Unique Fabricating 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 Unique Fabricating 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 Class has no effect on the direction of Unique Fabricating i.e., Unique Fabricating and ECARX Holdings go up and down completely randomly.
Pair Corralation between Unique Fabricating and ECARX Holdings
If you would invest 182.00 in ECARX Holdings Class on September 5, 2024 and sell it today you would earn a total of 8.00 from holding ECARX Holdings Class or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Unique Fabricating vs. ECARX Holdings Class
Performance |
| Timeline |
| Unique Fabricating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ECARX Holdings Class |
Unique Fabricating and ECARX Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unique Fabricating and ECARX Holdings
The main advantage of trading using opposite Unique Fabricating and ECARX Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unique Fabricating 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.| Unique Fabricating vs. Aeva Technologies | Unique Fabricating vs. Innoviz Technologies | Unique Fabricating vs. Hesai Group American | Unique Fabricating vs. Luminar Technologies |
| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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