Correlation Between Zoomcar Holdings and Avis Budget
Can any of the company-specific risk be diversified away by investing in both Zoomcar Holdings and Avis Budget 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 Zoomcar Holdings and Avis Budget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoomcar Holdings and Avis Budget Group, you can compare the effects of market volatilities on Zoomcar Holdings and Avis Budget 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 Zoomcar Holdings with a short position of Avis Budget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomcar Holdings and Avis Budget.
Diversification Opportunities for Zoomcar Holdings and Avis Budget
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zoomcar and Avis is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zoomcar Holdings and Avis Budget Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avis Budget Group and Zoomcar Holdings 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 Zoomcar Holdings are associated (or correlated) with Avis Budget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avis Budget Group has no effect on the direction of Zoomcar Holdings i.e., Zoomcar Holdings and Avis Budget go up and down completely randomly.
Pair Corralation between Zoomcar Holdings and Avis Budget
Given the investment horizon of 90 days Zoomcar Holdings is expected to generate 13.0 times more return on investment than Avis Budget. However, Zoomcar Holdings is 13.0 times more volatile than Avis Budget Group. It trades about 0.12 of its potential returns per unit of risk. Avis Budget Group is currently generating about 0.24 per unit of risk. If you would invest 581.00 in Zoomcar Holdings on August 27, 2024 and sell it today you would earn a total of 22.00 from holding Zoomcar Holdings or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoomcar Holdings vs. Avis Budget Group
Performance |
| Timeline |
| Zoomcar Holdings |
| Avis Budget Group |
Zoomcar Holdings and Avis Budget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoomcar Holdings and Avis Budget
The main advantage of trading using opposite Zoomcar Holdings and Avis Budget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomcar Holdings position performs unexpectedly, Avis Budget 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 Avis Budget will offset losses from the drop in Avis Budget's long position.| Zoomcar Holdings vs. Lipocine | Zoomcar Holdings vs. Coursera | Zoomcar Holdings vs. Pearson PLC ADR | Zoomcar Holdings vs. Skillful Craftsman Education |
| Avis Budget vs. Hertz Global Hldgs | Avis Budget vs. Ryder System | Avis Budget vs. HE Equipment Services | Avis Budget vs. United Rentals |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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