Correlation Between Cango and Jiuzi Holdings
Can any of the company-specific risk be diversified away by investing in both Cango and Jiuzi Holdings 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 Cango and Jiuzi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cango Inc and Jiuzi Holdings, you can compare the effects of market volatilities on Cango and Jiuzi Holdings 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 Cango with a short position of Jiuzi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cango and Jiuzi Holdings.
Diversification Opportunities for Cango and Jiuzi Holdings
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cango and Jiuzi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cango Inc and Jiuzi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiuzi Holdings and Cango 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 Cango Inc are associated (or correlated) with Jiuzi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiuzi Holdings has no effect on the direction of Cango i.e., Cango and Jiuzi Holdings go up and down completely randomly.
Pair Corralation between Cango and Jiuzi Holdings
Given the investment horizon of 90 days Cango Inc is expected to generate 0.56 times more return on investment than Jiuzi Holdings. However, Cango Inc is 1.78 times less risky than Jiuzi Holdings. It trades about 0.13 of its potential returns per unit of risk. Jiuzi Holdings is currently generating about 0.01 per unit of risk. If you would invest 105.00 in Cango Inc on November 9, 2024 and sell it today you would earn a total of 379.00 from holding Cango Inc or generate 360.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cango Inc vs. Jiuzi Holdings
Performance |
| Timeline |
| Cango Inc |
| Jiuzi Holdings |
Cango and Jiuzi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cango and Jiuzi Holdings
The main advantage of trading using opposite Cango and Jiuzi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cango position performs unexpectedly, Jiuzi Holdings 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 Jiuzi Holdings will offset losses from the drop in Jiuzi Holdings' long position.| Cango vs. Cars Inc | Cango vs. KAR Auction Services | Cango vs. Rush Enterprises B | Cango vs. Rush Enterprises A |
| Jiuzi Holdings vs. SunCar Technology Group | Jiuzi Holdings vs. Vroom Inc | Jiuzi Holdings vs. Carvana Co | Jiuzi Holdings vs. Uxin |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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