Correlation Between ECARX Holdings and National Vision
Can any of the company-specific risk be diversified away by investing in both ECARX Holdings and National Vision 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 ECARX Holdings and National Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECARX Holdings Class and National Vision Holdings, you can compare the effects of market volatilities on ECARX Holdings and National Vision 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 ECARX Holdings with a short position of National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and National Vision.
Diversification Opportunities for ECARX Holdings and National Vision
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ECARX and National is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Class and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision Holdings and ECARX Holdings 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 ECARX Holdings Class are associated (or correlated) with National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and National Vision go up and down completely randomly.
Pair Corralation between ECARX Holdings and National Vision
Considering the 90-day investment horizon ECARX Holdings is expected to generate 1.96 times less return on investment than National Vision. In addition to that, ECARX Holdings is 2.27 times more volatile than National Vision Holdings. It trades about 0.08 of its total potential returns per unit of risk. National Vision Holdings is currently generating about 0.37 per unit of volatility. If you would invest 1,235 in National Vision Holdings on April 30, 2025 and sell it today you would earn a total of 1,220 from holding National Vision Holdings or generate 98.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECARX Holdings Class vs. National Vision Holdings
Performance |
| Timeline |
| ECARX Holdings Class |
| National Vision Holdings |
ECARX Holdings and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECARX Holdings and National Vision
The main advantage of trading using opposite ECARX Holdings and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECARX Holdings position performs unexpectedly, National Vision 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 National Vision will offset losses from the drop in National Vision's long position.| ECARX Holdings vs. Amprius Technologies | ECARX Holdings vs. bioAffinity Technologies, | ECARX Holdings vs. FingerMotion | ECARX Holdings vs. Virgin Group Acquisition |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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