Correlation Between ZEEKR Intelligent and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and Hyzon Motors 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 Hyzon Motors 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 Hyzon Motors, you can compare the effects of market volatilities on ZEEKR Intelligent and Hyzon Motors 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 Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and Hyzon Motors.
Diversification Opportunities for ZEEKR Intelligent and Hyzon Motors
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZEEKR and Hyzon is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon 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 Hyzon Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyzon Motors has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Hyzon Motors go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and Hyzon Motors
Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to generate 0.84 times more return on investment than Hyzon Motors. However, ZEEKR Intelligent Technology is 1.2 times less risky than Hyzon Motors. It trades about 0.05 of its potential returns per unit of risk. Hyzon Motors is currently generating about -0.11 per unit of risk. If you would invest 2,100 in ZEEKR Intelligent Technology on September 4, 2024 and sell it today you would earn a total of 296.00 from holding ZEEKR Intelligent Technology or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 49.66% |
| Values | Daily Returns |
ZEEKR Intelligent Technology vs. Hyzon Motors
Performance |
| Timeline |
| ZEEKR Intelligent |
| Hyzon Motors |
ZEEKR Intelligent and Hyzon Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEEKR Intelligent and Hyzon Motors
The main advantage of trading using opposite ZEEKR Intelligent and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, Hyzon Motors 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 Hyzon Motors will offset losses from the drop in Hyzon Motors' long position.| ZEEKR Intelligent vs. Tesla Inc | ZEEKR Intelligent vs. Nio Class A | ZEEKR Intelligent vs. Xpeng Inc | ZEEKR Intelligent vs. Lucid Group |
| Hyzon Motors vs. Mullen Automotive | Hyzon Motors vs. Canoo Inc | Hyzon Motors vs. Faraday Future Intelligent | Hyzon Motors vs. Polestar Automotive Holding |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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