Correlation Between Carvana and Zhongsheng Group
Can any of the company-specific risk be diversified away by investing in both Carvana and Zhongsheng Group 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 Carvana and Zhongsheng Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carvana Co and Zhongsheng Group Holdings, you can compare the effects of market volatilities on Carvana and Zhongsheng Group 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 Carvana with a short position of Zhongsheng Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carvana and Zhongsheng Group.
Diversification Opportunities for Carvana and Zhongsheng Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carvana and Zhongsheng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carvana Co and Zhongsheng Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongsheng Group Holdings and Carvana 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 Carvana Co are associated (or correlated) with Zhongsheng Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongsheng Group Holdings has no effect on the direction of Carvana i.e., Carvana and Zhongsheng Group go up and down completely randomly.
Pair Corralation between Carvana and Zhongsheng Group
If you would invest 17,716 in Carvana Co on November 4, 2024 and sell it today you would earn a total of 7,032 from holding Carvana Co or generate 39.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Carvana Co vs. Zhongsheng Group Holdings
Performance |
| Timeline |
| Carvana |
| Zhongsheng Group Holdings |
Carvana and Zhongsheng Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carvana and Zhongsheng Group
The main advantage of trading using opposite Carvana and Zhongsheng Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carvana position performs unexpectedly, Zhongsheng Group 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 Zhongsheng Group will offset losses from the drop in Zhongsheng Group's long position.| Carvana vs. CarMax Inc | Carvana vs. U Power Limited | Carvana vs. SunCar Technology Group | Carvana vs. Jiuzi Holdings |
| Zhongsheng Group vs. SunCar Technology Group | Zhongsheng Group vs. Jiuzi Holdings | Zhongsheng Group vs. Vroom Inc | Zhongsheng Group vs. Carvana Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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