Correlation Between Academy Sports and Uxin
Can any of the company-specific risk be diversified away by investing in both Academy Sports 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 Academy Sports and Uxin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Academy Sports Outdoors and Uxin, you can compare the effects of market volatilities on Academy Sports 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 Academy Sports with a short position of Uxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Uxin.
Diversification Opportunities for Academy Sports and Uxin
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Academy and Uxin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Uxin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxin and Academy Sports 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 Academy Sports Outdoors 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 Academy Sports i.e., Academy Sports and Uxin go up and down completely randomly.
Pair Corralation between Academy Sports and Uxin
Considering the 90-day investment horizon Academy Sports Outdoors is expected to generate 0.3 times more return on investment than Uxin. However, Academy Sports Outdoors is 3.28 times less risky than Uxin. It trades about 0.01 of its potential returns per unit of risk. Uxin is currently generating about -0.01 per unit of risk. If you would invest 4,759 in Academy Sports Outdoors on August 24, 2024 and sell it today you would lose (95.00) from holding Academy Sports Outdoors or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Uxin
Performance |
| Timeline |
| Academy Sports Outdoors |
| Uxin |
Academy Sports and Uxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Uxin
The main advantage of trading using opposite Academy Sports and Uxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports 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.| Academy Sports vs. AutoZone | Academy Sports vs. Best Buy Co | Academy Sports vs. Dicks Sporting Goods | Academy Sports vs. Advance Auto Parts |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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