Correlation Between BRP and ZEEKR Intelligent

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

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

Diversification Opportunities for BRP and ZEEKR Intelligent

-0.03

Correlation Coefficient

BRP  ZEEKR Intelligent

Good diversification

The 3 months correlation between BRP and ZEEKR is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BRP Inc and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent and BRP 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 BRP Inc 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 BRP i.e., BRP and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between BRP and ZEEKR Intelligent

Given the investment horizon of 90 days BRP Inc is expected to under-perform the ZEEKR Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, BRP Inc is 2.02 times less risky than ZEEKR Intelligent. The stock trades about -0.2 of its potential returns per unit of risk. The ZEEKR Intelligent Technology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  3,045  in ZEEKR Intelligent Technology on December 23, 2024 and sell it today you would lose (339.00) from holding ZEEKR Intelligent Technology or give up 11.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BRP Inc  vs.  ZEEKR Intelligent Technology

BRP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days BRP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

ZEEKR Intelligent

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZEEKR Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, ZEEKR Intelligent is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with BRP and ZEEKR Intelligent

The main advantage of trading using opposite BRP and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRP 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 BRP Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.