Correlation Between Uxin and Kingsway Financial
Can any of the company-specific risk be diversified away by investing in both Uxin and Kingsway Financial 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 Uxin and Kingsway Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uxin and Kingsway Financial Services, you can compare the effects of market volatilities on Uxin and Kingsway Financial 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 Uxin with a short position of Kingsway Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uxin and Kingsway Financial.
Diversification Opportunities for Uxin and Kingsway Financial
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Uxin and Kingsway is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Uxin and Kingsway Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsway Financial and Uxin 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 Uxin are associated (or correlated) with Kingsway Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsway Financial has no effect on the direction of Uxin i.e., Uxin and Kingsway Financial go up and down completely randomly.
Pair Corralation between Uxin and Kingsway Financial
Given the investment horizon of 90 days Uxin is expected to generate 3.21 times more return on investment than Kingsway Financial. However, Uxin is 3.21 times more volatile than Kingsway Financial Services. It trades about 0.18 of its potential returns per unit of risk. Kingsway Financial Services is currently generating about -0.16 per unit of risk. If you would invest 403.00 in Uxin on October 21, 2024 and sell it today you would earn a total of 50.00 from holding Uxin or generate 12.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uxin vs. Kingsway Financial Services
Performance |
| Timeline |
| Uxin |
| Kingsway Financial |
Uxin and Kingsway Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uxin and Kingsway Financial
The main advantage of trading using opposite Uxin and Kingsway Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uxin position performs unexpectedly, Kingsway Financial 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 Kingsway Financial will offset losses from the drop in Kingsway Financial's long position.| Uxin vs. Kingsway Financial Services | Uxin vs. KAR Auction Services | Uxin vs. Cango Inc | Uxin vs. U Power Limited |
| Kingsway Financial vs. CarGurus | Kingsway Financial vs. KAR Auction Services | Kingsway Financial vs. Driven Brands Holdings | Kingsway Financial vs. Group 1 Automotive |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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