Correlation Between ECARX Holdings and Fossil Group

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

By analyzing existing cross correlation between ECARX Holdings Warrants and Fossil Group 7, you can compare the effects of market volatilities on ECARX Holdings and Fossil Group 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 Fossil Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECARX Holdings and Fossil Group.

Diversification Opportunities for ECARX Holdings and Fossil Group

-0.26

Correlation Coefficient

ECARX Holdings  Fossil Group

Very good diversification

The 3 months correlation between ECARX and Fossil is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ECARX Holdings Warrants and Fossil Group 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group 7 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 Warrants are associated (or correlated) with Fossil Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group 7 has no effect on the direction of ECARX Holdings i.e., ECARX Holdings and Fossil Group go up and down completely randomly.

Pair Corralation between ECARX Holdings and Fossil Group

Assuming the 90 days horizon ECARX Holdings is expected to generate 2.89 times less return on investment than Fossil Group. In addition to that, ECARX Holdings is 4.89 times more volatile than Fossil Group 7. It trades about 0.01 of its total potential returns per unit of risk. Fossil Group 7 is currently generating about 0.12 per unit of volatility. If you would invest  1,700  in Fossil Group 7 on May 17, 2025 and sell it today you would earn a total of  288.00  from holding Fossil Group 7 or generate 16.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	75.41%
Values	Daily Returns

ECARX Holdings Warrants  vs.  Fossil Group 7

ECARX Holdings Warrants

Risk-Adjusted Performance

Weakest

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

Fossil Group 7

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fossil Group 7 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Fossil Group disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ECARX Holdings and Fossil Group

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

The idea behind ECARX Holdings Warrants and Fossil Group 7 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.