Correlation Between Arcimoto and EZGO Technologies

Can any of the company-specific risk be diversified away by investing in both Arcimoto and EZGO Technologies 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 Arcimoto and EZGO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Arcimoto and EZGO Technologies, you can compare the effects of market volatilities on Arcimoto and EZGO Technologies 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 Arcimoto with a short position of EZGO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcimoto and EZGO Technologies.

Diversification Opportunities for Arcimoto and EZGO Technologies

-0.03

Correlation Coefficient

Arcimoto  EZGO Technologies

Good diversification

The 3 months correlation between Arcimoto and EZGO is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Arcimoto and EZGO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EZGO Technologies and Arcimoto 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 Arcimoto are associated (or correlated) with EZGO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EZGO Technologies has no effect on the direction of Arcimoto i.e., Arcimoto and EZGO Technologies go up and down completely randomly.

Pair Corralation between Arcimoto and EZGO Technologies

If you would invest  147.00  in Arcimoto on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Arcimoto or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Arcimoto  vs.  EZGO Technologies

Arcimoto

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Arcimoto has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Arcimoto is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

EZGO Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EZGO Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Arcimoto and EZGO Technologies

The main advantage of trading using opposite Arcimoto and EZGO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcimoto position performs unexpectedly, EZGO Technologies 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 EZGO Technologies will offset losses from the drop in EZGO Technologies' long position.

The idea behind Arcimoto and EZGO Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.