Correlation Between Jiuzi Holdings and Cango
Can any of the company-specific risk be diversified away by investing in both Jiuzi Holdings and Cango 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 Jiuzi Holdings and Cango into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiuzi Holdings and Cango Inc, you can compare the effects of market volatilities on Jiuzi Holdings and Cango 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 Jiuzi Holdings with a short position of Cango. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiuzi Holdings and Cango.
Diversification Opportunities for Jiuzi Holdings and Cango
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiuzi and Cango is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jiuzi Holdings and Cango Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cango Inc and Jiuzi 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 Jiuzi Holdings are associated (or correlated) with Cango. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cango Inc has no effect on the direction of Jiuzi Holdings i.e., Jiuzi Holdings and Cango go up and down completely randomly.
Pair Corralation between Jiuzi Holdings and Cango
Given the investment horizon of 90 days Jiuzi Holdings is expected to generate 6.97 times less return on investment than Cango. In addition to that, Jiuzi Holdings is 1.78 times more volatile than Cango Inc. It trades about 0.01 of its total potential returns per unit of risk. Cango Inc is currently generating about 0.13 per unit of volatility. 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 |
Jiuzi Holdings vs. Cango Inc
Performance |
| Timeline |
| Jiuzi Holdings |
| Cango Inc |
Jiuzi Holdings and Cango Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiuzi Holdings and Cango
The main advantage of trading using opposite Jiuzi Holdings and Cango positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiuzi Holdings position performs unexpectedly, Cango 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 Cango will offset losses from the drop in Cango's long position.| Jiuzi Holdings vs. SunCar Technology Group | Jiuzi Holdings vs. Vroom Inc | Jiuzi Holdings vs. Carvana Co | Jiuzi Holdings vs. Uxin |
| Cango vs. Cars Inc | Cango vs. KAR Auction Services | Cango vs. Rush Enterprises B | Cango vs. Rush Enterprises A |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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