Correlation Between Cenntro Electric and Canoo
Can any of the company-specific risk be diversified away by investing in both Cenntro Electric and Canoo 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 Cenntro Electric and Canoo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenntro Electric Group and Canoo Inc, you can compare the effects of market volatilities on Cenntro Electric and Canoo 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 Cenntro Electric with a short position of Canoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenntro Electric and Canoo.
Diversification Opportunities for Cenntro Electric and Canoo
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cenntro and Canoo is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cenntro Electric Group and Canoo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canoo Inc and Cenntro Electric 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 Cenntro Electric Group are associated (or correlated) with Canoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canoo Inc has no effect on the direction of Cenntro Electric i.e., Cenntro Electric and Canoo go up and down completely randomly.
Pair Corralation between Cenntro Electric and Canoo
Given the investment horizon of 90 days Cenntro Electric Group is expected to generate 0.16 times more return on investment than Canoo. However, Cenntro Electric Group is 6.42 times less risky than Canoo. It trades about -0.24 of its potential returns per unit of risk. Canoo Inc is currently generating about -0.29 per unit of risk. If you would invest 123.00 in Cenntro Electric Group on December 2, 2024 and sell it today you would lose (49.00) from holding Cenntro Electric Group or give up 39.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 68.85% |
Values | Daily Returns |
Cenntro Electric Group vs. Canoo Inc
Performance |
Timeline |
Cenntro Electric |
Canoo Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cenntro Electric and Canoo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cenntro Electric and Canoo
The main advantage of trading using opposite Cenntro Electric and Canoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenntro Electric position performs unexpectedly, Canoo 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 Canoo will offset losses from the drop in Canoo's long position.Cenntro Electric vs. Mullen Automotive | Cenntro Electric vs. AYRO Inc | Cenntro Electric vs. Workhorse Group | Cenntro Electric vs. Faraday Future Intelligent |
Canoo vs. Lucid Group | Canoo vs. Rivian Automotive | Canoo vs. Polestar Automotive Holding | Canoo 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |