Correlation Between Rev and Huachen AI

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

By analyzing existing cross correlation between Rev Group and Huachen AI Parking, you can compare the effects of market volatilities on Rev and Huachen AI 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 Rev with a short position of Huachen AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rev and Huachen AI.

Diversification Opportunities for Rev and Huachen AI

-0.88

Correlation Coefficient

Rev  Huachen AI

Pay attention - limited upside

The 3 months correlation between Rev and Huachen is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Rev Group and Huachen AI Parking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huachen AI Parking and Rev 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 Rev Group are associated (or correlated) with Huachen AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huachen AI Parking has no effect on the direction of Rev i.e., Rev and Huachen AI go up and down completely randomly.

Pair Corralation between Rev and Huachen AI

Given the investment horizon of 90 days Rev Group is expected to generate 0.23 times more return on investment than Huachen AI. However, Rev Group is 4.42 times less risky than Huachen AI. It trades about 0.23 of its potential returns per unit of risk. Huachen AI Parking is currently generating about -0.26 per unit of risk. If you would invest  3,552  in Rev Group on May 6, 2025 and sell it today you would earn a total of  1,362  from holding Rev Group or generate 38.36% return on investment over 90 days.

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

Rev Group  vs.  Huachen AI Parking

Rev Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rev Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Rev reported solid returns over the last few months and may actually be approaching a breakup point.

Huachen AI Parking

Risk-Adjusted Performance

Very Weak

Over the last 90 days Huachen AI Parking has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Rev and Huachen AI

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

The idea behind Rev Group and Huachen AI Parking 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.