China Automotive Correlations

CAAS Stock

USD 3.96 0.17 4.12%

The current 90-days correlation between China Automotive Systems and Ford Motor is 0.1 (i.e., Average diversification). The correlation of China Automotive is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

China Automotive Correlation With Market

Average diversification

The correlation between China Automotive Systems and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding China Automotive Systems and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in China Automotive Systems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with China Stock

0.64

XPEV

Xpeng Inc Aggressive Push

Pair Corr

Moving against China Stock

0.4	HOG	Harley Davidson Sell-off Trend	Pair Corr
0.38	VLCN	Volcon Inc	Pair Corr
0.34	QS	Quantumscape Corp	Pair Corr
0.34	FRSX	Foresight Autonomous Buyout Trend	Pair Corr
0.32	ECDA	ECD Automotive Design	Pair Corr
0.53	HLLY	Holley Inc	Pair Corr
0.43	SES	SES AI Corp	Pair Corr
0.39	LCID	Lucid Group Aggressive Push	Pair Corr
0.35	SRI	Stoneridge	Pair Corr
0.35	INVZ	Innoviz Technologies Buyout Trend	Pair Corr

Related Correlations Analysis

	F	GM	GT	LI	TM	ZK
F		0.54	0.33	-0.14	-0.23	-0.31	F
GM	0.54		0.64	-0.54	-0.43	0.2	GM
GT	0.33	0.64		-0.54	-0.14	0.29	GT
LI	-0.14	-0.54	-0.54		0.05	0.23	LI
TM	-0.23	-0.43	-0.14	0.05		-0.26	TM
ZK	-0.31	0.2	0.29	0.23	-0.26		ZK
	F	GM	GT	LI	TM	ZK

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

GT	+ 0.64	GM
GM	+ 0.54	F
GT	+ 0.33	F
ZK	+ 0.29	GT
ZK	+ 0.23	LI
ZK	+ 0.2	GM

High negative correlations

LI	- 0.54	GT
LI	- 0.54	GM
TM	- 0.43	GM
ZK	- 0.31	F
ZK	- 0.26	TM
TM	- 0.23	F

Risk-Adjusted Indicators

There is a big difference between China Stock performing well and China Automotive Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze China Automotive's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
F	1.44	(0.15)	0.00	(0.08)	0.00	0.00	2.53	(2.90)	11.21
GM	1.55	0.09	0.04	0.09	2.21	(1.50)	3.73	(2.51)	18.79
GT	2.44	0.04	0.02	0.04	2.84	(2.61)	4.66	(4.79)	21.26
LI	3.07	0.24	0.05	(2.13)	4.04	(3.21)	6.78	(7.07)	25.08
TM	1.01	(0.03)	0.00	(0.08)	0.00	0.00	2.27	(2.40)	6.42
ZK	4.92	0.99	0.16	1.21	5.43	(5.58)	13.39	(8.32)	48.52

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