Correlation Between Kaixin Auto and Cars
Can any of the company-specific risk be diversified away by investing in both Kaixin Auto and Cars 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 Kaixin Auto and Cars into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaixin Auto Holdings and Cars Inc, you can compare the effects of market volatilities on Kaixin Auto and Cars 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 Kaixin Auto with a short position of Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaixin Auto and Cars.
Diversification Opportunities for Kaixin Auto and Cars
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaixin and Cars is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kaixin Auto Holdings and Cars Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cars Inc and Kaixin Auto 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 Kaixin Auto Holdings are associated (or correlated) with Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cars Inc has no effect on the direction of Kaixin Auto i.e., Kaixin Auto and Cars go up and down completely randomly.
Pair Corralation between Kaixin Auto and Cars
If you would invest 1,658 in Cars Inc on March 15, 2024 and sell it today you would earn a total of 413.00 from holding Cars Inc or generate 24.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.61% |
Values | Daily Returns |
Kaixin Auto Holdings vs. Cars Inc
Performance |
Timeline |
Kaixin Auto Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cars Inc |
Kaixin Auto and Cars Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kaixin Auto and Cars
The main advantage of trading using opposite Kaixin Auto and Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaixin Auto position performs unexpectedly, Cars 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 Cars will offset losses from the drop in Cars' long position.Kaixin Auto vs. Western Asset Investment | Kaixin Auto vs. Paysafe | Kaixin Auto vs. Aegon NV ADR | Kaixin Auto vs. Canaf Investments |
Cars vs. KAR Auction Services | Cars vs. Kingsway Financial Services | Cars vs. Driven Brands Holdings | Cars vs. Group 1 Automotive |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |