Correlation Between Jiuzi Holdings and Shift Technologies
Can any of the company-specific risk be diversified away by investing in both Jiuzi Holdings and Shift Technologies 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 Shift Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiuzi Holdings and Shift Technologies, you can compare the effects of market volatilities on Jiuzi Holdings and Shift Technologies 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 Shift Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiuzi Holdings and Shift Technologies.
Diversification Opportunities for Jiuzi Holdings and Shift Technologies
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiuzi and Shift is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jiuzi Holdings and Shift Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shift Technologies 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 Shift Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shift Technologies has no effect on the direction of Jiuzi Holdings i.e., Jiuzi Holdings and Shift Technologies go up and down completely randomly.
Pair Corralation between Jiuzi Holdings and Shift Technologies
Given the investment horizon of 90 days Jiuzi Holdings is expected to under-perform the Shift Technologies. In addition to that, Jiuzi Holdings is 1.54 times more volatile than Shift Technologies. It trades about -0.05 of its total potential returns per unit of risk. Shift Technologies is currently generating about 0.09 per unit of volatility. If you would invest 190.00 in Shift Technologies on August 31, 2024 and sell it today you would earn a total of 23.00 from holding Shift Technologies or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.29% |
| Values | Daily Returns |
Jiuzi Holdings vs. Shift Technologies
Performance |
| Timeline |
| Jiuzi Holdings |
| Shift Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jiuzi Holdings and Shift Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiuzi Holdings and Shift Technologies
The main advantage of trading using opposite Jiuzi Holdings and Shift Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiuzi Holdings position performs unexpectedly, Shift Technologies 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 Shift Technologies will offset losses from the drop in Shift Technologies' long position.| Jiuzi Holdings vs. Lithia Motors | Jiuzi Holdings vs. AutoNation | Jiuzi Holdings vs. Asbury Automotive Group | Jiuzi Holdings vs. Penske Automotive Group |
| Shift Technologies vs. Carvana Co | Shift Technologies vs. CarMax Inc | Shift Technologies vs. U Power Limited | Shift Technologies vs. Vroom Inc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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