Correlation Between Vroom and Jiuzi Holdings
Can any of the company-specific risk be diversified away by investing in both Vroom 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 Vroom and Jiuzi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vroom Inc and Jiuzi Holdings, you can compare the effects of market volatilities on Vroom 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 Vroom with a short position of Jiuzi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vroom and Jiuzi Holdings.
Diversification Opportunities for Vroom and Jiuzi Holdings
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vroom and Jiuzi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Vroom Inc and Jiuzi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiuzi Holdings and Vroom 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 Vroom Inc 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 Vroom i.e., Vroom and Jiuzi Holdings go up and down completely randomly.
Pair Corralation between Vroom and Jiuzi Holdings
Considering the 90-day investment horizon Vroom Inc is expected to under-perform the Jiuzi Holdings. In addition to that, Vroom is 2.56 times more volatile than Jiuzi Holdings. It trades about -0.16 of its total potential returns per unit of risk. Jiuzi Holdings is currently generating about -0.14 per unit of volatility. If you would invest 154.00 in Jiuzi Holdings on August 24, 2024 and sell it today you would lose (20.00) from holding Jiuzi Holdings or give up 12.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vroom Inc vs. Jiuzi Holdings
Performance |
| Timeline |
| Vroom Inc |
| Jiuzi Holdings |
Vroom and Jiuzi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vroom and Jiuzi Holdings
The main advantage of trading using opposite Vroom and Jiuzi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vroom 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.| Vroom vs. CarMax Inc | Vroom vs. SunCar Technology Group | Vroom vs. U Power Limited | Vroom vs. Camping World Holdings |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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