Correlation Between EZGO Technologies and Vision Marine

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

By analyzing existing cross correlation between EZGO Technologies and Vision Marine Technologies, you can compare the effects of market volatilities on EZGO Technologies and Vision Marine 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 EZGO Technologies with a short position of Vision Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZGO Technologies and Vision Marine.

Diversification Opportunities for EZGO Technologies and Vision Marine

0.72

Correlation Coefficient

EZGO Technologies  Vision Marine

Poor diversification

The 3 months correlation between EZGO and Vision is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding EZGO Technologies and Vision Marine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Marine Techno and EZGO Technologies 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 EZGO Technologies are associated (or correlated) with Vision Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Marine Techno has no effect on the direction of EZGO Technologies i.e., EZGO Technologies and Vision Marine go up and down completely randomly.

Pair Corralation between EZGO Technologies and Vision Marine

Given the investment horizon of 90 days EZGO Technologies is expected to under-perform the Vision Marine. But the stock apears to be less risky and, when comparing its historical volatility, EZGO Technologies is 2.22 times less risky than Vision Marine. The stock trades about -0.23 of its potential returns per unit of risk. The Vision Marine Technologies is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  155.00  in Vision Marine Technologies on December 28, 2024 and sell it today you would lose (93.00) from holding Vision Marine Technologies or give up 60.0% of portfolio value over 90 days.

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

EZGO Technologies  vs.  Vision Marine Technologies

EZGO Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days EZGO Technologies 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 technical and fundamental 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.

Vision Marine Techno

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vision Marine Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with EZGO Technologies and Vision Marine

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

The idea behind EZGO Technologies and Vision Marine Technologies 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.