Correlation Between Winmark and Kaixin Auto
Can any of the company-specific risk be diversified away by investing in both Winmark and Kaixin Auto 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 Winmark and Kaixin Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winmark and Kaixin Auto Holdings, you can compare the effects of market volatilities on Winmark and Kaixin Auto 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 Winmark with a short position of Kaixin Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winmark and Kaixin Auto.
Diversification Opportunities for Winmark and Kaixin Auto
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Winmark and Kaixin is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Winmark and Kaixin Auto Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaixin Auto Holdings and Winmark 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 Winmark are associated (or correlated) with Kaixin Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaixin Auto Holdings has no effect on the direction of Winmark i.e., Winmark and Kaixin Auto go up and down completely randomly.
Pair Corralation between Winmark and Kaixin Auto
Given the investment horizon of 90 days Winmark is expected to generate 0.16 times more return on investment than Kaixin Auto. However, Winmark is 6.33 times less risky than Kaixin Auto. It trades about 0.03 of its potential returns per unit of risk. Kaixin Auto Holdings is currently generating about -0.1 per unit of risk. If you would invest 38,309 in Winmark on November 2, 2024 and sell it today you would earn a total of 991.00 from holding Winmark or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winmark vs. Kaixin Auto Holdings
Performance |
| Timeline |
| Winmark |
| Kaixin Auto Holdings |
Winmark and Kaixin Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winmark and Kaixin Auto
The main advantage of trading using opposite Winmark and Kaixin Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winmark position performs unexpectedly, Kaixin Auto 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 Kaixin Auto will offset losses from the drop in Kaixin Auto's long position.| Winmark vs. Mesa Laboratories | Winmark vs. Utah Medical Products | Winmark vs. Weyco Group | Winmark vs. Diamond Hill Investment |
| Kaixin Auto vs. Vroom Inc | Kaixin Auto vs. Cango Inc | Kaixin Auto vs. Cars Inc | Kaixin Auto vs. KAR Auction Services |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |