Correlation Between ZEEKR Intelligent and GM
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and GM 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 GM 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 General Motors, you can compare the effects of market volatilities on ZEEKR Intelligent and GM 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 GM. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and GM.
Diversification Opportunities for ZEEKR Intelligent and GM
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZEEKR and GM is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and General Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Motors 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 GM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Motors has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and GM go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and GM
Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to under-perform the GM. In addition to that, ZEEKR Intelligent is 2.77 times more volatile than General Motors. It trades about -0.06 of its total potential returns per unit of risk. General Motors is currently generating about 0.13 per unit of volatility. If you would invest 5,154 in General Motors on August 30, 2024 and sell it today you would earn a total of 396.00 from holding General Motors or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZEEKR Intelligent Technology vs. General Motors
Performance |
| Timeline |
| ZEEKR Intelligent |
| General Motors |
ZEEKR Intelligent and GM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEEKR Intelligent and GM
The main advantage of trading using opposite ZEEKR Intelligent and GM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, GM 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 GM will offset losses from the drop in GM's long position.| ZEEKR Intelligent vs. Consol Energy | ZEEKR Intelligent vs. Olympic Steel | ZEEKR Intelligent vs. Western Copper and | ZEEKR Intelligent vs. Eldorado Gold 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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