Correlation Between Xpeng and Nissan
Can any of the company-specific risk be diversified away by investing in both Xpeng and Nissan 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 Xpeng and Nissan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xpeng Inc and Nissan Motor Co, you can compare the effects of market volatilities on Xpeng and Nissan 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 Xpeng with a short position of Nissan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xpeng and Nissan.
Diversification Opportunities for Xpeng and Nissan
Pay attention - limited upside
The 3 months correlation between Xpeng and Nissan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xpeng Inc and Nissan Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nissan Motor and Xpeng 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 Xpeng Inc are associated (or correlated) with Nissan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nissan Motor has no effect on the direction of Xpeng i.e., Xpeng and Nissan go up and down completely randomly.
Pair Corralation between Xpeng and Nissan
If you would invest 1,214 in Xpeng Inc on November 9, 2024 and sell it today you would earn a total of 496.00 from holding Xpeng Inc or generate 40.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Xpeng Inc vs. Nissan Motor Co
Performance |
| Timeline |
| Xpeng Inc |
| Nissan Motor |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xpeng and Nissan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xpeng and Nissan
The main advantage of trading using opposite Xpeng and Nissan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xpeng position performs unexpectedly, Nissan 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 Nissan will offset losses from the drop in Nissan's long position.The idea behind Xpeng Inc and Nissan Motor Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nissan vs. Honda Motor Co | Nissan vs. Toyota Motor | Nissan vs. Hyundai Motor Co | Nissan vs. Mazda Motor Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |