Correlation Between Carvana and Shift Technologies
Can any of the company-specific risk be diversified away by investing in both Carvana and Shift Technologies 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 Carvana and Shift Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carvana Co and Shift Technologies, you can compare the effects of market volatilities on Carvana and Shift Technologies 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 Carvana with a short position of Shift Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carvana and Shift Technologies.
Diversification Opportunities for Carvana and Shift Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carvana and Shift is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carvana Co and Shift Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shift Technologies and Carvana 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 Carvana Co are associated (or correlated) with Shift Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shift Technologies has no effect on the direction of Carvana i.e., Carvana and Shift Technologies go up and down completely randomly.
Pair Corralation between Carvana and Shift Technologies
If you would invest (100.00) in Shift Technologies on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Shift Technologies or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Carvana Co vs. Shift Technologies
Performance |
Timeline |
Carvana |
Shift Technologies |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Carvana and Shift Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Carvana and Shift Technologies
The main advantage of trading using opposite Carvana and Shift Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carvana position performs unexpectedly, Shift Technologies 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 Shift Technologies will offset losses from the drop in Shift Technologies' long position.Carvana vs. CarMax Inc | Carvana vs. U Power Limited | Carvana vs. SunCar Technology Group | Carvana vs. Jiuzi Holdings |
Shift Technologies vs. Carvana Co | Shift Technologies vs. CarMax Inc | Shift Technologies vs. U Power Limited | Shift Technologies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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