Correlation Between Newegg Commerce and Uxin
Can any of the company-specific risk be diversified away by investing in both Newegg Commerce and Uxin 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 Newegg Commerce and Uxin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newegg Commerce and Uxin, you can compare the effects of market volatilities on Newegg Commerce and Uxin 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 Newegg Commerce with a short position of Uxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newegg Commerce and Uxin.
Diversification Opportunities for Newegg Commerce and Uxin
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newegg and Uxin is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Newegg Commerce and Uxin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxin and Newegg Commerce 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 Newegg Commerce are associated (or correlated) with Uxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uxin has no effect on the direction of Newegg Commerce i.e., Newegg Commerce and Uxin go up and down completely randomly.
Pair Corralation between Newegg Commerce and Uxin
Given the investment horizon of 90 days Newegg Commerce is expected to under-perform the Uxin. But the stock apears to be less risky and, when comparing its historical volatility, Newegg Commerce is 1.15 times less risky than Uxin. The stock trades about -0.07 of its potential returns per unit of risk. The Uxin is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 438.00 in Uxin on November 29, 2024 and sell it today you would earn a total of 1.00 from holding Uxin or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newegg Commerce vs. Uxin
Performance |
| Timeline |
| Newegg Commerce |
| Uxin |
Newegg Commerce and Uxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newegg Commerce and Uxin
The main advantage of trading using opposite Newegg Commerce and Uxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newegg Commerce position performs unexpectedly, Uxin 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 Uxin will offset losses from the drop in Uxin's long position.| Newegg Commerce vs. Jeffs Brands | Newegg Commerce vs. Jumia Technologies AG | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. Qurate Retail Series |
| Uxin vs. Kingsway Financial Services | Uxin vs. KAR Auction Services | Uxin vs. Cango Inc | Uxin vs. U Power Limited |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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