Correlation Between Advance Auto and Uxin
Can any of the company-specific risk be diversified away by investing in both Advance Auto and Uxin 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 Advance Auto and Uxin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance Auto Parts and Uxin, you can compare the effects of market volatilities on Advance Auto and Uxin 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 Advance Auto with a short position of Uxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Auto and Uxin.
Diversification Opportunities for Advance Auto and Uxin
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advance and Uxin is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Advance Auto Parts and Uxin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxin and Advance Auto 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 Advance Auto Parts are associated (or correlated) with Uxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uxin has no effect on the direction of Advance Auto i.e., Advance Auto and Uxin go up and down completely randomly.
Pair Corralation between Advance Auto and Uxin
Considering the 90-day investment horizon Advance Auto Parts is expected to generate 0.49 times more return on investment than Uxin. However, Advance Auto Parts is 2.05 times less risky than Uxin. It trades about 0.17 of its potential returns per unit of risk. Uxin is currently generating about 0.08 per unit of risk. If you would invest 3,745 in Advance Auto Parts on September 4, 2024 and sell it today you would earn a total of 515.00 from holding Advance Auto Parts or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advance Auto Parts vs. Uxin
Performance |
| Timeline |
| Advance Auto Parts |
| Uxin |
Advance Auto and Uxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advance Auto and Uxin
The main advantage of trading using opposite Advance Auto and Uxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Auto position performs unexpectedly, Uxin 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 Uxin will offset losses from the drop in Uxin's long position.| Advance Auto vs. AutoZone | Advance Auto vs. Tractor Supply | Advance Auto vs. Genuine Parts Co | Advance Auto vs. Five Below |
| Uxin vs. Kingsway Financial Services | Uxin vs. KAR Auction Services | Uxin vs. Cango Inc | Uxin vs. Vroom Inc |
Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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