Correlation Between ZEEKR Intelligent and Rivian Automotive
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive, you can compare the effects of market volatilities on ZEEKR Intelligent and Rivian Automotive 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 Rivian Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and Rivian Automotive.
Diversification Opportunities for ZEEKR Intelligent and Rivian Automotive
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZEEKR and Rivian is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Rivian Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rivian Automotive 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 Rivian Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rivian Automotive has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Rivian Automotive go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and Rivian Automotive
Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to under-perform the Rivian Automotive. In addition to that, ZEEKR Intelligent is 1.33 times more volatile than Rivian Automotive. It trades about -0.09 of its total potential returns per unit of risk. Rivian Automotive is currently generating about 0.08 per unit of volatility. If you would invest 1,086 in Rivian Automotive on August 28, 2024 and sell it today you would earn a total of 74.00 from holding Rivian Automotive or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZEEKR Intelligent Technology vs. Rivian Automotive
Performance |
| Timeline |
| ZEEKR Intelligent |
| Rivian Automotive |
ZEEKR Intelligent and Rivian Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEEKR Intelligent and Rivian Automotive
The main advantage of trading using opposite ZEEKR Intelligent and Rivian Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, Rivian Automotive 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 Rivian Automotive will offset losses from the drop in Rivian Automotive's long position.| ZEEKR Intelligent vs. Visteon Corp | ZEEKR Intelligent vs. Brunswick | ZEEKR Intelligent vs. Universal Music Group | ZEEKR Intelligent vs. BorgWarner |
| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Lucid Group | Rivian Automotive vs. Tesla Inc | Rivian Automotive vs. Mullen Automotive |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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