Correlation Between Volcon and ZEEKR Intelligent

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

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

Diversification Opportunities for Volcon and ZEEKR Intelligent

-0.01

Correlation Coefficient

Volcon  ZEEKR Intelligent

Good diversification

The 3 months correlation between Volcon and ZEEKR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Volcon 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 Volcon 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 Volcon 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 Volcon i.e., Volcon and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between Volcon and ZEEKR Intelligent

Given the investment horizon of 90 days Volcon Inc is expected to under-perform the ZEEKR Intelligent. In addition to that, Volcon is 1.66 times more volatile than ZEEKR Intelligent Technology. It trades about -0.26 of its total potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about -0.02 per unit of volatility. If you would invest  2,825  in ZEEKR Intelligent Technology on December 28, 2024 and sell it today you would lose (345.00) from holding ZEEKR Intelligent Technology or give up 12.21% of portfolio value over 90 days.

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

Volcon Inc  vs.  ZEEKR Intelligent Technology

Volcon Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Volcon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's 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.

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 latest unfluctuating performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Volcon and ZEEKR Intelligent

The main advantage of trading using opposite Volcon and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volcon 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 Volcon 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.