Correlation Between Cazoo and Lazydays Holdings
Can any of the company-specific risk be diversified away by investing in both Cazoo and Lazydays 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 Cazoo and Lazydays Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cazoo Group and Lazydays Holdings, you can compare the effects of market volatilities on Cazoo and Lazydays 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 Cazoo with a short position of Lazydays Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cazoo and Lazydays Holdings.
Diversification Opportunities for Cazoo and Lazydays Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cazoo and Lazydays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cazoo Group and Lazydays Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazydays Holdings and Cazoo 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 Cazoo Group are associated (or correlated) with Lazydays Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazydays Holdings has no effect on the direction of Cazoo i.e., Cazoo and Lazydays Holdings go up and down completely randomly.
Pair Corralation between Cazoo and Lazydays Holdings
If you would invest (100.00) in Lazydays Holdings on November 8, 2024 and sell it today you would earn a total of 100.00 from holding Lazydays Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cazoo Group vs. Lazydays Holdings
Performance |
| Timeline |
| Cazoo Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lazydays Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cazoo and Lazydays Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cazoo and Lazydays Holdings
The main advantage of trading using opposite Cazoo and Lazydays Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cazoo position performs unexpectedly, Lazydays 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 Lazydays Holdings will offset losses from the drop in Lazydays Holdings' long position.The idea behind Cazoo Group and Lazydays Holdings 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.| Lazydays Holdings vs. Limbach Holdings | Lazydays Holdings vs. Clarus Corp | Lazydays Holdings vs. Onewater Marine | Lazydays Holdings vs. One Group Hospitality |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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