Correlation Between Lazydays Holdings and SunCar Technology
Can any of the company-specific risk be diversified away by investing in both Lazydays Holdings and SunCar Technology 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 SunCar Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazydays Holdings and SunCar Technology Group, you can compare the effects of market volatilities on Lazydays Holdings and SunCar Technology 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 SunCar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazydays Holdings and SunCar Technology.
Diversification Opportunities for Lazydays Holdings and SunCar Technology
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazydays and SunCar is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lazydays Holdings and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology 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 SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of Lazydays Holdings i.e., Lazydays Holdings and SunCar Technology go up and down completely randomly.
Pair Corralation between Lazydays Holdings and SunCar Technology
Given the investment horizon of 90 days Lazydays Holdings is expected to under-perform the SunCar Technology. But the stock apears to be less risky and, when comparing its historical volatility, Lazydays Holdings is 1.72 times less risky than SunCar Technology. The stock trades about -0.03 of its potential returns per unit of risk. The SunCar Technology Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 19.00 in SunCar Technology Group on August 28, 2024 and sell it today you would earn a total of 12.00 from holding SunCar Technology Group or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Lazydays Holdings vs. SunCar Technology Group
Performance |
| Timeline |
| Lazydays Holdings |
| SunCar Technology |
Lazydays Holdings and SunCar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazydays Holdings and SunCar Technology
The main advantage of trading using opposite Lazydays Holdings and SunCar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazydays Holdings position performs unexpectedly, SunCar Technology 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 SunCar Technology will offset losses from the drop in SunCar Technology's long position.| Lazydays Holdings vs. Hertz Global Holdings | Lazydays Holdings vs. Inhibrx | Lazydays Holdings vs. Mind Medicine | Lazydays Holdings vs. HE Equipment Services |
| SunCar Technology vs. Keurig Dr Pepper | SunCar Technology vs. Naked Wines plc | SunCar Technology vs. Ambev SA ADR | SunCar Technology vs. Primo Brands |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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