Correlation Between Cenntro Electric and Sonder Holdings

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

Diversification Opportunities for Cenntro Electric and Sonder Holdings

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between Cenntro and Sonder is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cenntro Electric Group and Sonder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonder Holdings 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 Sonder Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonder Holdings has no effect on the direction of Cenntro Electric i.e., Cenntro Electric and Sonder Holdings go up and down completely randomly.

Pair Corralation between Cenntro Electric and Sonder Holdings

Given the investment horizon of 90 days Cenntro Electric Group is expected to generate 0.59 times more return on investment than Sonder Holdings. However, Cenntro Electric Group is 1.7 times less risky than Sonder Holdings. It trades about -0.17 of its potential returns per unit of risk. Sonder Holdings is currently generating about -0.2 per unit of risk. If you would invest  56.00  in Cenntro Electric Group on August 15, 2025 and sell it today you would lose (39.00) from holding Cenntro Electric Group or give up 69.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Cenntro Electric Group  vs.  Sonder Holdings

 Performance 
       Timeline  
Cenntro Electric 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cenntro Electric Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Sonder Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Sonder Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Cenntro Electric and Sonder Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cenntro Electric and Sonder Holdings

The main advantage of trading using opposite Cenntro Electric and Sonder Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenntro Electric position performs unexpectedly, Sonder Holdings 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 Sonder Holdings will offset losses from the drop in Sonder Holdings' long position.
The idea behind Cenntro Electric Group and Sonder Holdings 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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