Correlation Between Lotus Technology and Carters
Can any of the company-specific risk be diversified away by investing in both Lotus Technology and Carters 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 Lotus Technology and Carters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotus Technology American and Carters, you can compare the effects of market volatilities on Lotus Technology and Carters 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 Lotus Technology with a short position of Carters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Technology and Carters.
Diversification Opportunities for Lotus Technology and Carters
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lotus and Carters is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Technology American and Carters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carters and Lotus Technology 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 Lotus Technology American are associated (or correlated) with Carters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carters has no effect on the direction of Lotus Technology i.e., Lotus Technology and Carters go up and down completely randomly.
Pair Corralation between Lotus Technology and Carters
Considering the 90-day investment horizon Lotus Technology American is expected to under-perform the Carters. In addition to that, Lotus Technology is 1.48 times more volatile than Carters. It trades about -0.14 of its total potential returns per unit of risk. Carters is currently generating about 0.15 per unit of volatility. If you would invest 2,723 in Carters on October 10, 2025 and sell it today you would earn a total of 712.00 from holding Carters or generate 26.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Technology American vs. Carters
Performance |
| Timeline |
| Lotus Technology American |
| Carters |
Lotus Technology and Carters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Technology and Carters
The main advantage of trading using opposite Lotus Technology and Carters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Technology position performs unexpectedly, Carters 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 Carters will offset losses from the drop in Carters' long position.| Lotus Technology vs. Canada Goose Holdings | Lotus Technology vs. LiveWire Group | Lotus Technology vs. Polestar Automotive Holding | Lotus Technology vs. La Z Boy Incorporated |
| Carters vs. Biglari Holdings | Carters vs. G III Apparel Group | Carters vs. Lotus Technology American | Carters vs. SUPER HI INTERNATIONAL |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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