Correlation Between Electric Last and Cenntro Electric

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

By analyzing existing cross correlation between Electric Last Mile and Cenntro Electric Group, you can compare the effects of market volatilities on Electric Last and Cenntro Electric 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 Electric Last with a short position of Cenntro Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electric Last and Cenntro Electric.

Diversification Opportunities for Electric Last and Cenntro Electric

0.0

Correlation Coefficient

Electric Last  Cenntro Electric

Pay attention - limited upside

The 3 months correlation between Electric and Cenntro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electric Last Mile and Cenntro Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenntro Electric and Electric Last 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 Electric Last Mile are associated (or correlated) with Cenntro Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenntro Electric has no effect on the direction of Electric Last i.e., Electric Last and Cenntro Electric go up and down completely randomly.

Pair Corralation between Electric Last and Cenntro Electric

If you would invest (100.00) in Electric Last Mile on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Electric Last Mile or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Electric Last Mile  vs.  Cenntro Electric Group

Electric Last Mile

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electric Last Mile has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Electric Last is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Cenntro Electric

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cenntro Electric Group 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.

Pair Trading with Electric Last and Cenntro Electric

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

The idea behind Electric Last Mile and Cenntro Electric Group 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.