Correlation Between Treasury Wine and ZEEKR Intelligent

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

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

Diversification Opportunities for Treasury Wine and ZEEKR Intelligent

-0.21

Correlation Coefficient

Treasury Wine  ZEEKR Intelligent

Very good diversification

The 3 months correlation between Treasury and ZEEKR is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Treasury Wine Estates and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent and Treasury Wine 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 Treasury Wine Estates 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 Treasury Wine i.e., Treasury Wine and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between Treasury Wine and ZEEKR Intelligent

Assuming the 90 days horizon Treasury Wine Estates is expected to under-perform the ZEEKR Intelligent. But the pink sheet apears to be less risky and, when comparing its historical volatility, Treasury Wine Estates is 4.21 times less risky than ZEEKR Intelligent. The pink sheet trades about -0.15 of its potential returns per unit of risk. The ZEEKR Intelligent Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,819  in ZEEKR Intelligent Technology on October 13, 2024 and sell it today you would lose (40.00) from holding ZEEKR Intelligent Technology or give up 1.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Treasury Wine Estates  vs.  ZEEKR Intelligent Technology

Treasury Wine Estates

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Treasury Wine Estates has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

ZEEKR Intelligent

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, ZEEKR Intelligent disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Treasury Wine and ZEEKR Intelligent

The main advantage of trading using opposite Treasury Wine and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treasury Wine 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 Treasury Wine Estates 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.