Correlation Between Shift Technologies and SunCar Technology
Can any of the company-specific risk be diversified away by investing in both Shift Technologies and SunCar Technology 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 Shift Technologies and SunCar Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shift Technologies and SunCar Technology Group, you can compare the effects of market volatilities on Shift Technologies and SunCar Technology 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 Shift Technologies with a short position of SunCar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shift Technologies and SunCar Technology.
Diversification Opportunities for Shift Technologies and SunCar Technology
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shift and SunCar is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shift Technologies and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology and Shift Technologies 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 Shift Technologies are associated (or correlated) with SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of Shift Technologies i.e., Shift Technologies and SunCar Technology go up and down completely randomly.
Pair Corralation between Shift Technologies and SunCar Technology
If you would invest 213.00 in Shift Technologies on August 28, 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Shift Technologies vs. SunCar Technology Group
Performance |
| Timeline |
| Shift Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SunCar Technology |
Shift Technologies and SunCar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shift Technologies and SunCar Technology
The main advantage of trading using opposite Shift Technologies and SunCar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shift Technologies position performs unexpectedly, SunCar Technology 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 SunCar Technology will offset losses from the drop in SunCar Technology's long position.| Shift Technologies vs. Carvana Co | Shift Technologies vs. CarMax Inc | Shift Technologies vs. U Power Limited | Shift Technologies vs. Vroom Inc |
| SunCar Technology vs. Ultrapar Participacoes SA | SunCar Technology vs. Companhia Siderurgica Nacional | SunCar Technology vs. Dawson Geophysical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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