Correlation Between ZEEKR Intelligent and ECARX Holdings
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and ECARX 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 ZEEKR Intelligent and ECARX Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZEEKR Intelligent Technology and ECARX Holdings Class, you can compare the effects of market volatilities on ZEEKR Intelligent and ECARX 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 ZEEKR Intelligent with a short position of ECARX Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and ECARX Holdings.
Diversification Opportunities for ZEEKR Intelligent and ECARX Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZEEKR and ECARX is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and ECARX Holdings Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECARX Holdings Class and ZEEKR Intelligent 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 ZEEKR Intelligent Technology are associated (or correlated) with ECARX Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECARX Holdings Class has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and ECARX Holdings go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and ECARX Holdings
Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to generate 0.39 times more return on investment than ECARX Holdings. However, ZEEKR Intelligent Technology is 2.55 times less risky than ECARX Holdings. It trades about 0.0 of its potential returns per unit of risk. ECARX Holdings Class is currently generating about -0.01 per unit of risk. If you would invest 2,706 in ZEEKR Intelligent Technology on March 21, 2025 and sell it today you would lose (111.00) from holding ZEEKR Intelligent Technology or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
ZEEKR Intelligent Technology vs. ECARX Holdings Class
Performance |
| Timeline |
| ZEEKR Intelligent |
| ECARX Holdings Class |
ZEEKR Intelligent and ECARX Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEEKR Intelligent and ECARX Holdings
The main advantage of trading using opposite ZEEKR Intelligent and ECARX Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, ECARX 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 ECARX Holdings will offset losses from the drop in ECARX Holdings' long position.| ZEEKR Intelligent vs. Weibo Corp | ZEEKR Intelligent vs. Zhihu Inc ADR | ZEEKR Intelligent vs. Fomento Economico Mexicano | ZEEKR Intelligent vs. Dave Busters Entertainment |
| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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