Correlation Between SunCar Technology and Zhongsheng Group
Can any of the company-specific risk be diversified away by investing in both SunCar Technology and Zhongsheng Group 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 Zhongsheng Group 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 Zhongsheng Group Holdings, you can compare the effects of market volatilities on SunCar Technology and Zhongsheng Group 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 Zhongsheng Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunCar Technology and Zhongsheng Group.
Diversification Opportunities for SunCar Technology and Zhongsheng Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunCar and Zhongsheng is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SunCar Technology Group and Zhongsheng Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongsheng Group Holdings 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 Zhongsheng Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongsheng Group Holdings has no effect on the direction of SunCar Technology i.e., SunCar Technology and Zhongsheng Group go up and down completely randomly.
Pair Corralation between SunCar Technology and Zhongsheng Group
Considering the 90-day investment horizon SunCar Technology Group is expected to generate 0.75 times more return on investment than Zhongsheng Group. However, SunCar Technology Group is 1.34 times less risky than Zhongsheng Group. It trades about 0.1 of its potential returns per unit of risk. Zhongsheng Group Holdings is currently generating about -0.18 per unit of risk. If you would invest 883.00 in SunCar Technology Group on October 20, 2024 and sell it today you would earn a total of 59.00 from holding SunCar Technology Group or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SunCar Technology Group vs. Zhongsheng Group Holdings
Performance |
| Timeline |
| SunCar Technology |
| Zhongsheng Group Holdings |
SunCar Technology and Zhongsheng Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunCar Technology and Zhongsheng Group
The main advantage of trading using opposite SunCar Technology and Zhongsheng Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunCar Technology position performs unexpectedly, Zhongsheng Group 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 Zhongsheng Group will offset losses from the drop in Zhongsheng Group's long position.| SunCar Technology vs. Ultrapar Participacoes SA | SunCar Technology vs. Companhia Siderurgica Nacional | SunCar Technology vs. Dawson Geophysical |
| Zhongsheng Group vs. CarMax Inc | Zhongsheng Group vs. SunCar Technology Group | Zhongsheng Group vs. U Power Limited | Zhongsheng Group vs. Camping World Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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