Correlation Between Lands End and Jiuzi Holdings
Can any of the company-specific risk be diversified away by investing in both Lands End and Jiuzi 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 Lands End and Jiuzi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lands End and Jiuzi Holdings, you can compare the effects of market volatilities on Lands End and Jiuzi 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 Lands End with a short position of Jiuzi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lands End and Jiuzi Holdings.
Diversification Opportunities for Lands End and Jiuzi Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lands and Jiuzi is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lands End and Jiuzi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiuzi Holdings and Lands End 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 Lands End are associated (or correlated) with Jiuzi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiuzi Holdings has no effect on the direction of Lands End i.e., Lands End and Jiuzi Holdings go up and down completely randomly.
Pair Corralation between Lands End and Jiuzi Holdings
Allowing for the 90-day total investment horizon Lands End is expected to under-perform the Jiuzi Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Lands End is 3.69 times less risky than Jiuzi Holdings. The stock trades about -0.29 of its potential returns per unit of risk. The Jiuzi Holdings is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 159.00 in Jiuzi Holdings on November 9, 2024 and sell it today you would earn a total of 96.00 from holding Jiuzi Holdings or generate 60.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lands End vs. Jiuzi Holdings
Performance |
| Timeline |
| Lands End |
| Jiuzi Holdings |
Lands End and Jiuzi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lands End and Jiuzi Holdings
The main advantage of trading using opposite Lands End and Jiuzi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lands End position performs unexpectedly, Jiuzi 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 Jiuzi Holdings will offset losses from the drop in Jiuzi Holdings' long position.| Lands End vs. Tillys Inc | Lands End vs. Zumiez Inc | Lands End vs. Citi Trends | Lands End vs. Cato Corporation |
| Jiuzi Holdings vs. SunCar Technology Group | Jiuzi Holdings vs. Vroom Inc | Jiuzi Holdings vs. Carvana Co | Jiuzi Holdings vs. Uxin |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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