Correlation Between Jiuzi Holdings and Vroom

Can any of the company-specific risk be diversified away by investing in both Jiuzi Holdings and Vroom 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 Jiuzi Holdings and Vroom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jiuzi Holdings and Vroom Inc, you can compare the effects of market volatilities on Jiuzi Holdings and Vroom 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 Jiuzi Holdings with a short position of Vroom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiuzi Holdings and Vroom.

Diversification Opportunities for Jiuzi Holdings and Vroom

0.0

Correlation Coefficient

Jiuzi Holdings  Vroom

Pay attention - limited upside

The 3 months correlation between Jiuzi and Vroom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jiuzi Holdings and Vroom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vroom Inc and Jiuzi 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 Jiuzi Holdings are associated (or correlated) with Vroom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vroom Inc has no effect on the direction of Jiuzi Holdings i.e., Jiuzi Holdings and Vroom go up and down completely randomly.

Pair Corralation between Jiuzi Holdings and Vroom

Given the investment horizon of 90 days Jiuzi Holdings is expected to generate 1.26 times more return on investment than Vroom. However, Jiuzi Holdings is 1.26 times more volatile than Vroom Inc. It trades about 0.07 of its potential returns per unit of risk. Vroom Inc is currently generating about -0.13 per unit of risk. If you would invest  144.00  in Jiuzi Holdings on October 11, 2024 and sell it today you would earn a total of  15.00  from holding Jiuzi Holdings or generate 10.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	78.05%
Values	Daily Returns

Jiuzi Holdings  vs.  Vroom Inc

Jiuzi Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jiuzi Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Jiuzi Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Vroom Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vroom Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Jiuzi Holdings and Vroom

The main advantage of trading using opposite Jiuzi Holdings and Vroom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiuzi Holdings position performs unexpectedly, Vroom 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 Vroom will offset losses from the drop in Vroom's long position.

The idea behind Jiuzi Holdings and Vroom Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..