Correlation Between 1StdibsCom and Uxin

Can any of the company-specific risk be diversified away by investing in both 1StdibsCom and Uxin 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 1StdibsCom and Uxin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1StdibsCom and Uxin, you can compare the effects of market volatilities on 1StdibsCom and Uxin 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 1StdibsCom with a short position of Uxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1StdibsCom and Uxin.

Diversification Opportunities for 1StdibsCom and Uxin

-0.33

Correlation Coefficient

1StdibsCom  Uxin

Very good diversification

The 3 months correlation between 1StdibsCom and Uxin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding 1StdibsCom and Uxin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxin and 1StdibsCom 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 1StdibsCom are associated (or correlated) with Uxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uxin has no effect on the direction of 1StdibsCom i.e., 1StdibsCom and Uxin go up and down completely randomly.

Pair Corralation between 1StdibsCom and Uxin

Given the investment horizon of 90 days 1StdibsCom is expected to under-perform the Uxin. But the stock apears to be less risky and, when comparing its historical volatility, 1StdibsCom is 6.96 times less risky than Uxin. The stock trades about -0.2 of its potential returns per unit of risk. The Uxin is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  153.00  in Uxin on September 13, 2024 and sell it today you would earn a total of  293.00  from holding Uxin or generate 191.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

1StdibsCom  vs.  Uxin

1StdibsCom

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1StdibsCom 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 fundamental drivers remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Uxin

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uxin are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward indicators, Uxin displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 1StdibsCom and Uxin

The main advantage of trading using opposite 1StdibsCom and Uxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1StdibsCom position performs unexpectedly, Uxin 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 Uxin will offset losses from the drop in Uxin's long position.

The idea behind 1StdibsCom and Uxin 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.