Correlation Between Consumer Automotive and Shift Technologies
Can any of the company-specific risk be diversified away by investing in both Consumer Automotive 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 Consumer Automotive and Shift Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consumer Automotive Finance and Shift Technologies, you can compare the effects of market volatilities on Consumer Automotive 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 Consumer Automotive with a short position of Shift Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumer Automotive and Shift Technologies.
Diversification Opportunities for Consumer Automotive and Shift Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consumer and Shift is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Automotive Finance and Shift Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shift Technologies and Consumer Automotive 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 Consumer Automotive Finance 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 Consumer Automotive i.e., Consumer Automotive and Shift Technologies go up and down completely randomly.
Pair Corralation between Consumer Automotive and Shift Technologies
If you would invest 213.00 in Shift Technologies on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Shift Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Consumer Automotive Finance vs. Shift Technologies
Performance |
| Timeline |
| Consumer Automotive |
| Shift Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Consumer Automotive and Shift Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consumer Automotive and Shift Technologies
The main advantage of trading using opposite Consumer Automotive and Shift Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumer Automotive 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.| Consumer Automotive vs. Grand Baoxin Auto | Consumer Automotive vs. AutoCanada | Consumer Automotive vs. Kaixin Auto Holdings | Consumer Automotive vs. Vroom Inc |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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