Correlation Between ZEEKR Intelligent and Guess

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

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

Diversification Opportunities for ZEEKR Intelligent and Guess

-0.05

Correlation Coefficient

ZEEKR Intelligent  Guess

Good diversification

The 3 months correlation between ZEEKR and Guess is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Guess Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guess Inc and ZEEKR Intelligent 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 ZEEKR Intelligent Technology are associated (or correlated) with Guess. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guess Inc has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Guess go up and down completely randomly.

Pair Corralation between ZEEKR Intelligent and Guess

Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to generate 0.95 times more return on investment than Guess. However, ZEEKR Intelligent Technology is 1.06 times less risky than Guess. It trades about -0.02 of its potential returns per unit of risk. Guess Inc is currently generating about -0.04 per unit of risk. If you would invest  2,920  in ZEEKR Intelligent Technology on December 27, 2024 and sell it today you would lose (343.00) from holding ZEEKR Intelligent Technology or give up 11.75% of portfolio value over 90 days.

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

ZEEKR Intelligent Technology  vs.  Guess Inc

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.

Guess Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guess Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with ZEEKR Intelligent and Guess

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

The idea behind ZEEKR Intelligent Technology and Guess Inc 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.