Correlation Between ECARX Holdings and SmartStop Self

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

Diversification Opportunities for ECARX Holdings and SmartStop Self

0.65

Correlation Coefficient

ECARX Holdings  SmartStop Self

Poor diversification

The 3 months correlation between ECARX and SmartStop is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Class and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage 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 SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and SmartStop Self go up and down completely randomly.

Pair Corralation between ECARX Holdings and SmartStop Self

Considering the 90-day investment horizon ECARX Holdings Class is expected to generate 83.57 times more return on investment than SmartStop Self. However, ECARX Holdings is 83.57 times more volatile than SmartStop Self Storage. It trades about 0.1 of its potential returns per unit of risk. SmartStop Self Storage is currently generating about 0.22 per unit of risk. If you would invest  120.00  in ECARX Holdings Class on April 29, 2025 and sell it today you would earn a total of  39.00  from holding ECARX Holdings Class or generate 32.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

ECARX Holdings Class  vs.  SmartStop Self Storage

ECARX Holdings Class

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ECARX Holdings Class are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, ECARX Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

SmartStop Self Storage

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SmartStop Self Storage are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, SmartStop Self is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ECARX Holdings and SmartStop Self

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

The idea behind ECARX Holdings Class and SmartStop Self Storage 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.