Correlation Between Lazydays Holdings and Kaixin Auto
Can any of the company-specific risk be diversified away by investing in both Lazydays Holdings and Kaixin Auto 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 Lazydays Holdings and Kaixin Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazydays Holdings and Kaixin Auto Holdings, you can compare the effects of market volatilities on Lazydays Holdings and Kaixin Auto 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 Lazydays Holdings with a short position of Kaixin Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazydays Holdings and Kaixin Auto.
Diversification Opportunities for Lazydays Holdings and Kaixin Auto
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lazydays and Kaixin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lazydays Holdings and Kaixin Auto Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaixin Auto Holdings and Lazydays Holdings 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 Lazydays Holdings are associated (or correlated) with Kaixin Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaixin Auto Holdings has no effect on the direction of Lazydays Holdings i.e., Lazydays Holdings and Kaixin Auto go up and down completely randomly.
Pair Corralation between Lazydays Holdings and Kaixin Auto
Given the investment horizon of 90 days Lazydays Holdings is expected to under-perform the Kaixin Auto. But the stock apears to be less risky and, when comparing its historical volatility, Lazydays Holdings is 5.3 times less risky than Kaixin Auto. The stock trades about -0.13 of its potential returns per unit of risk. The Kaixin Auto Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Kaixin Auto Holdings on August 28, 2024 and sell it today you would lose (251.00) from holding Kaixin Auto Holdings or give up 55.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazydays Holdings vs. Kaixin Auto Holdings
Performance |
| Timeline |
| Lazydays Holdings |
| Kaixin Auto Holdings |
Lazydays Holdings and Kaixin Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazydays Holdings and Kaixin Auto
The main advantage of trading using opposite Lazydays Holdings and Kaixin Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazydays Holdings position performs unexpectedly, Kaixin Auto 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 Kaixin Auto will offset losses from the drop in Kaixin Auto's long position.| Lazydays Holdings vs. Hertz Global Holdings | Lazydays Holdings vs. Inhibrx | Lazydays Holdings vs. Mind Medicine | Lazydays Holdings vs. HE Equipment Services |
| Kaixin Auto vs. Vroom Inc | Kaixin Auto vs. Cango Inc | Kaixin Auto vs. Cars Inc | Kaixin Auto vs. KAR Auction Services |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |