Correlation Between Uxin and Zhongsheng Group
Can any of the company-specific risk be diversified away by investing in both Uxin and Zhongsheng Group 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 Uxin and Zhongsheng Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uxin and Zhongsheng Group Holdings, you can compare the effects of market volatilities on Uxin and Zhongsheng Group 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 Uxin with a short position of Zhongsheng Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uxin and Zhongsheng Group.
Diversification Opportunities for Uxin and Zhongsheng Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Uxin and Zhongsheng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Uxin and Zhongsheng Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongsheng Group Holdings and Uxin 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 Uxin are associated (or correlated) with Zhongsheng Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongsheng Group Holdings has no effect on the direction of Uxin i.e., Uxin and Zhongsheng Group go up and down completely randomly.
Pair Corralation between Uxin and Zhongsheng Group
If you would invest 410.00 in Uxin on October 24, 2024 and sell it today you would earn a total of 41.00 from holding Uxin or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 81.82% |
Values | Daily Returns |
Uxin vs. Zhongsheng Group Holdings
Performance |
Timeline |
Uxin |
Zhongsheng Group Holdings |
Uxin and Zhongsheng Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Uxin and Zhongsheng Group
The main advantage of trading using opposite Uxin and Zhongsheng Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uxin position performs unexpectedly, Zhongsheng Group 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 Zhongsheng Group will offset losses from the drop in Zhongsheng Group's long position.Uxin vs. Kingsway Financial Services | Uxin vs. KAR Auction Services | Uxin vs. Cango Inc | Uxin vs. U Power Limited |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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