Correlation Between SunCar Technology and Jiuzi Holdings
Can any of the company-specific risk be diversified away by investing in both SunCar Technology 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 SunCar Technology and Jiuzi Holdings 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 Jiuzi Holdings, you can compare the effects of market volatilities on SunCar Technology 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 SunCar Technology with a short position of Jiuzi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunCar Technology and Jiuzi Holdings.
Diversification Opportunities for SunCar Technology and Jiuzi Holdings
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SunCar and Jiuzi is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SunCar Technology Group and Jiuzi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiuzi 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 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 SunCar Technology i.e., SunCar Technology and Jiuzi Holdings go up and down completely randomly.
Pair Corralation between SunCar Technology and Jiuzi Holdings
Assuming the 90 days horizon SunCar Technology Group is expected to generate 4.35 times more return on investment than Jiuzi Holdings. However, SunCar Technology is 4.35 times more volatile than Jiuzi Holdings. It trades about 0.24 of its potential returns per unit of risk. Jiuzi Holdings is currently generating about -0.22 per unit of risk. If you would invest 19.00 in SunCar Technology Group on August 28, 2024 and sell it today you would earn a total of 12.00 from holding SunCar Technology Group or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
SunCar Technology Group vs. Jiuzi Holdings
Performance |
| Timeline |
| SunCar Technology |
| Jiuzi Holdings |
SunCar Technology and Jiuzi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunCar Technology and Jiuzi Holdings
The main advantage of trading using opposite SunCar Technology and Jiuzi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunCar Technology 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.| SunCar Technology vs. Keurig Dr Pepper | SunCar Technology vs. Naked Wines plc | SunCar Technology vs. Ambev SA ADR | SunCar Technology vs. Primo Brands |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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