Correlation Between Carbon Revolution and ZEEKR Intelligent

Can any of the company-specific risk be diversified away by investing in both Carbon Revolution and ZEEKR Intelligent 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 Carbon Revolution and ZEEKR Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carbon Revolution Public and ZEEKR Intelligent Technology, you can compare the effects of market volatilities on Carbon Revolution and ZEEKR Intelligent 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 Carbon Revolution with a short position of ZEEKR Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carbon Revolution and ZEEKR Intelligent.

Diversification Opportunities for Carbon Revolution and ZEEKR Intelligent

-0.26

Correlation Coefficient

Carbon Revolution  ZEEKR Intelligent

Very good diversification

The 3 months correlation between Carbon and ZEEKR is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Carbon Revolution Public and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent and Carbon Revolution 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 Carbon Revolution Public are associated (or correlated) with ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of Carbon Revolution i.e., Carbon Revolution and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between Carbon Revolution and ZEEKR Intelligent

Assuming the 90 days horizon Carbon Revolution is expected to generate 1.27 times less return on investment than ZEEKR Intelligent. In addition to that, Carbon Revolution is 3.34 times more volatile than ZEEKR Intelligent Technology. It trades about 0.06 of its total potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about 0.24 per unit of volatility. If you would invest  2,240  in ZEEKR Intelligent Technology on September 23, 2024 and sell it today you would earn a total of  515.00  from holding ZEEKR Intelligent Technology or generate 22.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Carbon Revolution Public  vs.  ZEEKR Intelligent Technology

Carbon Revolution Public

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Carbon Revolution Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Carbon Revolution showed solid returns over the last few months and may actually be approaching a breakup point.

ZEEKR Intelligent

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating forward-looking signals, ZEEKR Intelligent disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Carbon Revolution and ZEEKR Intelligent

The main advantage of trading using opposite Carbon Revolution and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carbon Revolution position performs unexpectedly, ZEEKR Intelligent 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 ZEEKR Intelligent will offset losses from the drop in ZEEKR Intelligent's long position.

The idea behind Carbon Revolution Public and ZEEKR Intelligent Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.