Correlation Between ZEEKR Intelligent and Lotus Technology
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and Lotus Technology 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 Lotus Technology 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 Lotus Technology Warrants, you can compare the effects of market volatilities on ZEEKR Intelligent and Lotus Technology 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 Lotus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and Lotus Technology.
Diversification Opportunities for ZEEKR Intelligent and Lotus Technology
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZEEKR and Lotus is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Lotus Technology Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Technology Warrants 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 Lotus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Technology Warrants has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Lotus Technology go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and Lotus Technology
Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to under-perform the Lotus Technology. But the stock apears to be less risky and, when comparing its historical volatility, ZEEKR Intelligent Technology is 1.19 times less risky than Lotus Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Lotus Technology Warrants is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Lotus Technology Warrants on September 2, 2024 and sell it today you would lose (2.00) from holding Lotus Technology Warrants or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
ZEEKR Intelligent Technology vs. Lotus Technology Warrants
Performance |
| Timeline |
| ZEEKR Intelligent |
| Lotus Technology Warrants |
ZEEKR Intelligent and Lotus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEEKR Intelligent and Lotus Technology
The main advantage of trading using opposite ZEEKR Intelligent and Lotus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, Lotus Technology 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 Lotus Technology will offset losses from the drop in Lotus Technology's long position.| ZEEKR Intelligent vs. Globalfoundries | ZEEKR Intelligent vs. Everspin Technologies | ZEEKR Intelligent vs. Vishay Intertechnology | ZEEKR Intelligent vs. PennantPark Floating Rate |
| Lotus Technology vs. Western Midstream Partners | Lotus Technology vs. Southwest Gas Holdings | Lotus Technology vs. United States Steel | Lotus Technology vs. Aris Water Solutions |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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