Correlation Between AYRO and Cenntro Electric
Can any of the company-specific risk be diversified away by investing in both AYRO and Cenntro Electric 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 AYRO and Cenntro Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AYRO Inc and Cenntro Electric Group, you can compare the effects of market volatilities on AYRO and Cenntro Electric 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 AYRO with a short position of Cenntro Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of AYRO and Cenntro Electric.
Diversification Opportunities for AYRO and Cenntro Electric
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between AYRO and Cenntro is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AYRO Inc and Cenntro Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenntro Electric and AYRO 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 AYRO Inc are associated (or correlated) with Cenntro Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenntro Electric has no effect on the direction of AYRO i.e., AYRO and Cenntro Electric go up and down completely randomly.
Pair Corralation between AYRO and Cenntro Electric
Given the investment horizon of 90 days AYRO Inc is expected to under-perform the Cenntro Electric. But the stock apears to be less risky and, when comparing its historical volatility, AYRO Inc is 1.07 times less risky than Cenntro Electric. The stock trades about -0.04 of its potential returns per unit of risk. The Cenntro Electric Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 108.00 in Cenntro Electric Group on March 9, 2025 and sell it today you would lose (15.00) from holding Cenntro Electric Group or give up 13.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AYRO Inc vs. Cenntro Electric Group
Performance |
| Timeline |
| AYRO Inc |
| Cenntro Electric |
AYRO and Cenntro Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AYRO and Cenntro Electric
The main advantage of trading using opposite AYRO and Cenntro Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AYRO position performs unexpectedly, Cenntro Electric 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 Cenntro Electric will offset losses from the drop in Cenntro Electric's long position.The idea behind AYRO Inc and Cenntro Electric Group 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.| Cenntro Electric vs. Mullen Automotive | Cenntro Electric vs. AYRO Inc | Cenntro Electric vs. Workhorse Group | Cenntro Electric vs. GreenPower Motor |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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