Correlation Between ZEEKR Intelligent and LiveWire
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and LiveWire 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 LiveWire 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 LiveWire Group, you can compare the effects of market volatilities on ZEEKR Intelligent and LiveWire 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 LiveWire. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and LiveWire.
Diversification Opportunities for ZEEKR Intelligent and LiveWire
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between ZEEKR and LiveWire is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and LiveWire Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveWire Group 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 LiveWire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveWire Group has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and LiveWire go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and LiveWire
Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to generate 0.96 times more return on investment than LiveWire. However, ZEEKR Intelligent Technology is 1.04 times less risky than LiveWire. It trades about -0.04 of its potential returns per unit of risk. LiveWire Group is currently generating about -0.22 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 (479.00) from holding ZEEKR Intelligent Technology or give up 16.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ZEEKR Intelligent Technology vs. LiveWire Group
Performance |
Timeline |
ZEEKR Intelligent |
LiveWire Group |
ZEEKR Intelligent and LiveWire Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ZEEKR Intelligent and LiveWire
The main advantage of trading using opposite ZEEKR Intelligent and LiveWire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, LiveWire 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 LiveWire will offset losses from the drop in LiveWire's long position.ZEEKR Intelligent vs. FARO Technologies | ZEEKR Intelligent vs. Western Digital | ZEEKR Intelligent vs. Brunswick | ZEEKR Intelligent vs. Adient PLC |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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