Correlation Between Cenntro Electric and AYRO
Can any of the company-specific risk be diversified away by investing in both Cenntro Electric and AYRO 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 Cenntro Electric and AYRO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenntro Electric Group and AYRO Inc, you can compare the effects of market volatilities on Cenntro Electric and AYRO 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 Cenntro Electric with a short position of AYRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenntro Electric and AYRO.
Diversification Opportunities for Cenntro Electric and AYRO
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cenntro and AYRO is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cenntro Electric Group and AYRO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYRO Inc and Cenntro Electric 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 Cenntro Electric Group are associated (or correlated) with AYRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYRO Inc has no effect on the direction of Cenntro Electric i.e., Cenntro Electric and AYRO go up and down completely randomly.
Pair Corralation between Cenntro Electric and AYRO
Given the investment horizon of 90 days Cenntro Electric Group is expected to generate 1.5 times more return on investment than AYRO. However, Cenntro Electric is 1.5 times more volatile than AYRO Inc. It trades about 0.01 of its potential returns per unit of risk. AYRO Inc is currently generating about -0.03 per unit of risk. If you would invest 99.00 in Cenntro Electric Group on March 22, 2025 and sell it today you would lose (0.62) from holding Cenntro Electric Group or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cenntro Electric Group vs. AYRO Inc
Performance |
| Timeline |
| Cenntro Electric |
| AYRO Inc |
Cenntro Electric and AYRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenntro Electric and AYRO
The main advantage of trading using opposite Cenntro Electric and AYRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenntro Electric position performs unexpectedly, AYRO 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 AYRO will offset losses from the drop in AYRO's long position.| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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