Correlation Between ECARX Holdings and Card Factory

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

By analyzing existing cross correlation between ECARX Holdings Class and Card Factory plc, you can compare the effects of market volatilities on ECARX Holdings and Card Factory 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 ECARX Holdings with a short position of Card Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Card Factory.

Diversification Opportunities for ECARX Holdings and Card Factory

0.42

Correlation Coefficient

ECARX Holdings  Card Factory

Very weak diversification

The 3 months correlation between ECARX and Card is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Class and Card Factory plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Card Factory plc and ECARX Holdings 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 ECARX Holdings Class are associated (or correlated) with Card Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Card Factory plc has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Card Factory go up and down completely randomly.

Pair Corralation between ECARX Holdings and Card Factory

Considering the 90-day investment horizon ECARX Holdings Class is expected to generate 2.46 times more return on investment than Card Factory. However, ECARX Holdings is 2.46 times more volatile than Card Factory plc. It trades about 0.01 of its potential returns per unit of risk. Card Factory plc is currently generating about -0.01 per unit of risk. If you would invest  180.00  in ECARX Holdings Class on May 10, 2025 and sell it today you would lose (16.00) from holding ECARX Holdings Class or give up 8.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

ECARX Holdings Class  vs.  Card Factory plc

ECARX Holdings Class

Risk-Adjusted Performance

Weakest

Over the last 90 days ECARX Holdings Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, ECARX Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Card Factory plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Card Factory plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Card Factory is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ECARX Holdings and Card Factory

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

The idea behind ECARX Holdings Class and Card Factory plc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.