Correlation Between SunCar Technology and Uxin
Can any of the company-specific risk be diversified away by investing in both SunCar Technology 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 SunCar Technology and Uxin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunCar Technology Group and Uxin, you can compare the effects of market volatilities on SunCar Technology 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 SunCar Technology with a short position of Uxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunCar Technology and Uxin.
Diversification Opportunities for SunCar Technology and Uxin
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SunCar and Uxin is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SunCar Technology Group and Uxin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxin and SunCar Technology 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 SunCar Technology Group 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 SunCar Technology i.e., SunCar Technology and Uxin go up and down completely randomly.
Pair Corralation between SunCar Technology and Uxin
Considering the 90-day investment horizon SunCar Technology is expected to generate 5.97 times less return on investment than Uxin. But when comparing it to its historical volatility, SunCar Technology Group is 1.36 times less risky than Uxin. It trades about 0.04 of its potential returns per unit of risk. Uxin is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 472.00 in Uxin on August 24, 2024 and sell it today you would earn a total of 117.00 from holding Uxin or generate 24.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunCar Technology Group vs. Uxin
Performance |
| Timeline |
| SunCar Technology |
| Uxin |
SunCar Technology and Uxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunCar Technology and Uxin
The main advantage of trading using opposite SunCar Technology and Uxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunCar Technology 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.| SunCar Technology vs. Ultrapar Participacoes SA | SunCar Technology vs. Companhia Siderurgica Nacional | SunCar Technology vs. Dawson Geophysical |
| Uxin vs. Kingsway Financial Services | Uxin vs. KAR Auction Services | Uxin vs. Cango Inc | Uxin 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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