Correlation Between Vuzix Corp and Cenntro Electric
Can any of the company-specific risk be diversified away by investing in both Vuzix Corp 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 Vuzix Corp and Cenntro Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vuzix Corp Cmn and Cenntro Electric Group, you can compare the effects of market volatilities on Vuzix Corp 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 Vuzix Corp with a short position of Cenntro Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vuzix Corp and Cenntro Electric.
Diversification Opportunities for Vuzix Corp and Cenntro Electric
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vuzix and Cenntro is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and Cenntro Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenntro Electric and Vuzix Corp 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 Vuzix Corp Cmn 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 Vuzix Corp i.e., Vuzix Corp and Cenntro Electric go up and down completely randomly.
Pair Corralation between Vuzix Corp and Cenntro Electric
Given the investment horizon of 90 days Vuzix Corp Cmn is expected to generate 1.69 times more return on investment than Cenntro Electric. However, Vuzix Corp is 1.69 times more volatile than Cenntro Electric Group. It trades about 0.28 of its potential returns per unit of risk. Cenntro Electric Group is currently generating about 0.1 per unit of risk. If you would invest 194.00 in Vuzix Corp Cmn on March 10, 2025 and sell it today you would earn a total of 103.00 from holding Vuzix Corp Cmn or generate 53.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vuzix Corp Cmn vs. Cenntro Electric Group
Performance |
| Timeline |
| Vuzix Corp Cmn |
| Cenntro Electric |
Vuzix Corp and Cenntro Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vuzix Corp and Cenntro Electric
The main advantage of trading using opposite Vuzix Corp and Cenntro Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vuzix Corp 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.| Vuzix Corp vs. LG Display Co | Vuzix Corp vs. Universal Electronics | Vuzix Corp vs. Sonos Inc | Vuzix Corp vs. Sony Group Corp |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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