Correlation Between Vicinity and Electrameccanica
Can any of the company-specific risk be diversified away by investing in both Vicinity and Electrameccanica 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 Vicinity and Electrameccanica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vicinity Motor Corp and Electrameccanica Vehicles Corp, you can compare the effects of market volatilities on Vicinity and Electrameccanica 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 Vicinity with a short position of Electrameccanica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vicinity and Electrameccanica.
Diversification Opportunities for Vicinity and Electrameccanica
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vicinity and Electrameccanica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vicinity Motor Corp and Electrameccanica Vehicles Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrameccanica Veh and Vicinity 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 Vicinity Motor Corp are associated (or correlated) with Electrameccanica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrameccanica Veh has no effect on the direction of Vicinity i.e., Vicinity and Electrameccanica go up and down completely randomly.
Pair Corralation between Vicinity and Electrameccanica
If you would invest (100.00) in Electrameccanica Vehicles Corp on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Electrameccanica Vehicles Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vicinity Motor Corp vs. Electrameccanica Vehicles Corp
Performance |
| Timeline |
| Vicinity Motor Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Electrameccanica Veh |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Vicinity and Electrameccanica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vicinity and Electrameccanica
The main advantage of trading using opposite Vicinity and Electrameccanica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vicinity position performs unexpectedly, Electrameccanica 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 Electrameccanica will offset losses from the drop in Electrameccanica's long position.| Vicinity vs. Blue Bird Corp | Vicinity vs. AYRO Inc | Vicinity vs. BAIC Motor | Vicinity vs. Zapp Electric Vehicles |
| Electrameccanica vs. GreenPower Motor | Electrameccanica vs. Workhorse Group | Electrameccanica vs. Cenntro Electric Group | Electrameccanica vs. Volcon Inc |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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