Correlation Between ZEEKR Intelligent and Natural Alternatives

Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and Natural Alternatives 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 Natural Alternatives 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 Natural Alternatives International, you can compare the effects of market volatilities on ZEEKR Intelligent and Natural Alternatives 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 Natural Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and Natural Alternatives.

Diversification Opportunities for ZEEKR Intelligent and Natural Alternatives

-0.77

Correlation Coefficient

ZEEKR Intelligent  Natural Alternatives

Pay attention - limited upside

The 3 months correlation between ZEEKR and Natural is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Natural Alternatives Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Alternatives 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 Natural Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Alternatives has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Natural Alternatives go up and down completely randomly.

Pair Corralation between ZEEKR Intelligent and Natural Alternatives

Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to generate 1.69 times more return on investment than Natural Alternatives. However, ZEEKR Intelligent is 1.69 times more volatile than Natural Alternatives International. It trades about 0.16 of its potential returns per unit of risk. Natural Alternatives International is currently generating about -0.12 per unit of risk. If you would invest  1,598  in ZEEKR Intelligent Technology on September 13, 2024 and sell it today you would earn a total of  1,232  from holding ZEEKR Intelligent Technology or generate 77.1% return on investment over 90 days.

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

ZEEKR Intelligent Technology  vs.  Natural Alternatives Internati

ZEEKR Intelligent

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 12 (%) 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.

Natural Alternatives

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Natural Alternatives International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with ZEEKR Intelligent and Natural Alternatives

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

The idea behind ZEEKR Intelligent Technology and Natural Alternatives International 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..