Correlation Between ZEEKR Intelligent and Dana
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and Dana 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 ZEEKR Intelligent and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZEEKR Intelligent Technology and Dana Inc, you can compare the effects of market volatilities on ZEEKR Intelligent and Dana 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 ZEEKR Intelligent with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and Dana.
Diversification Opportunities for ZEEKR Intelligent and Dana
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZEEKR and Dana is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and ZEEKR Intelligent 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 ZEEKR Intelligent Technology are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Dana go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and Dana
Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to under-perform the Dana. In addition to that, ZEEKR Intelligent is 1.6 times more volatile than Dana Inc. It trades about -0.11 of its total potential returns per unit of risk. Dana Inc is currently generating about -0.16 per unit of volatility. If you would invest 1,039 in Dana Inc on August 27, 2024 and sell it today you would lose (185.00) from holding Dana Inc or give up 17.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZEEKR Intelligent Technology vs. Dana Inc
Performance |
| Timeline |
| ZEEKR Intelligent |
| Dana Inc |
ZEEKR Intelligent and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEEKR Intelligent and Dana
The main advantage of trading using opposite ZEEKR Intelligent and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| ZEEKR Intelligent vs. Visteon Corp | ZEEKR Intelligent vs. Brunswick | ZEEKR Intelligent vs. Universal Music Group | ZEEKR Intelligent vs. BorgWarner |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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