Correlation Between ZEEKR Intelligent and Gentex

Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and Gentex 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 Gentex 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 Gentex, you can compare the effects of market volatilities on ZEEKR Intelligent and Gentex 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 Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and Gentex.

Diversification Opportunities for ZEEKR Intelligent and Gentex

0.7

Correlation Coefficient

ZEEKR Intelligent  Gentex

Poor diversification

The 3 months correlation between ZEEKR and Gentex is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex 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 Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Gentex go up and down completely randomly.

Pair Corralation between ZEEKR Intelligent and Gentex

Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to generate 2.69 times more return on investment than Gentex. However, ZEEKR Intelligent is 2.69 times more volatile than Gentex. It trades about -0.01 of its potential returns per unit of risk. Gentex is currently generating about -0.12 per unit of risk. If you would invest  2,503  in ZEEKR Intelligent Technology on February 2, 2025 and sell it today you would lose (247.00) from holding ZEEKR Intelligent Technology or give up 9.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ZEEKR Intelligent Technology  vs.  Gentex

ZEEKR Intelligent

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZEEKR Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, ZEEKR Intelligent is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Gentex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gentex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ZEEKR Intelligent and Gentex

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

The idea behind ZEEKR Intelligent Technology and Gentex 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.