Correlation Between EZGO Technologies and Curtiss Motorcycles

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

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

Diversification Opportunities for EZGO Technologies and Curtiss Motorcycles

0.05

Correlation Coefficient

EZGO Technologies  Curtiss Motorcycles

Significant diversification

The 3 months correlation between EZGO and Curtiss is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding EZGO Technologies and Curtiss Motorcycles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Motorcycles and EZGO Technologies 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 EZGO Technologies are associated (or correlated) with Curtiss Motorcycles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtiss Motorcycles has no effect on the direction of EZGO Technologies i.e., EZGO Technologies and Curtiss Motorcycles go up and down completely randomly.

Pair Corralation between EZGO Technologies and Curtiss Motorcycles

Given the investment horizon of 90 days EZGO Technologies is expected to generate 1.25 times more return on investment than Curtiss Motorcycles. However, EZGO Technologies is 1.25 times more volatile than Curtiss Motorcycles. It trades about 0.02 of its potential returns per unit of risk. Curtiss Motorcycles is currently generating about -0.22 per unit of risk. If you would invest  39.00  in EZGO Technologies on May 6, 2025 and sell it today you would lose (5.30) from holding EZGO Technologies or give up 13.59% of portfolio value over 90 days.

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

EZGO Technologies  vs.  Curtiss Motorcycles

EZGO Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in EZGO Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, EZGO Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Curtiss Motorcycles

Risk-Adjusted Performance

Very Weak

Over the last 90 days Curtiss Motorcycles 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 basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with EZGO Technologies and Curtiss Motorcycles

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

The idea behind EZGO Technologies and Curtiss Motorcycles 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.