Correlation Between Lazydays Holdings and SunCar Technology

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

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

Diversification Opportunities for Lazydays Holdings and SunCar Technology

-0.43

Correlation Coefficient

Lazydays Holdings  SunCar Technology

Very good diversification

The 3 months correlation between Lazydays and SunCar is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lazydays Holdings and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology and Lazydays 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 Lazydays Holdings are associated (or correlated) with SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of Lazydays Holdings i.e., Lazydays Holdings and SunCar Technology go up and down completely randomly.

Pair Corralation between Lazydays Holdings and SunCar Technology

If you would invest  1,212  in Lazydays Holdings on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Lazydays Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Lazydays Holdings  vs.  SunCar Technology Group

Lazydays Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lazydays Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Lazydays Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SunCar Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SunCar Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, SunCar Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lazydays Holdings and SunCar Technology

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

The idea behind Lazydays Holdings and SunCar Technology Group 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.