Correlation Between WeRide American and ODDITY Tech
Can any of the company-specific risk be diversified away by investing in both WeRide American and ODDITY Tech 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 WeRide American and ODDITY Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WeRide American Depositary and ODDITY Tech Ltd, you can compare the effects of market volatilities on WeRide American and ODDITY Tech 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 WeRide American with a short position of ODDITY Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of WeRide American and ODDITY Tech.
Diversification Opportunities for WeRide American and ODDITY Tech
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WeRide and ODDITY is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding WeRide American Depositary and ODDITY Tech Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODDITY Tech and WeRide American 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 WeRide American Depositary are associated (or correlated) with ODDITY Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODDITY Tech has no effect on the direction of WeRide American i.e., WeRide American and ODDITY Tech go up and down completely randomly.
Pair Corralation between WeRide American and ODDITY Tech
Considering the 90-day investment horizon WeRide American Depositary is expected to generate 1.92 times more return on investment than ODDITY Tech. However, WeRide American is 1.92 times more volatile than ODDITY Tech Ltd. It trades about -0.06 of its potential returns per unit of risk. ODDITY Tech Ltd is currently generating about -0.27 per unit of risk. If you would invest 939.00 in WeRide American Depositary on August 19, 2025 and sell it today you would lose (227.00) from holding WeRide American Depositary or give up 24.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WeRide American Depositary vs. ODDITY Tech Ltd
Performance |
| Timeline |
| WeRide American Depo |
| ODDITY Tech |
WeRide American and ODDITY Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WeRide American and ODDITY Tech
The main advantage of trading using opposite WeRide American and ODDITY Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WeRide American position performs unexpectedly, ODDITY Tech 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 ODDITY Tech will offset losses from the drop in ODDITY Tech's long position.| WeRide American vs. Kingsoft Cloud Holdings | WeRide American vs. SPS Commerce | WeRide American vs. Blackbaud | WeRide American vs. Euronet Worldwide |
| ODDITY Tech vs. CSG Systems International | ODDITY Tech vs. Alarm Holdings | ODDITY Tech vs. Payoneer Global | ODDITY Tech vs. Gen Digital |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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