Correlation Between Lazydays Holdings and Uxin

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

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

Diversification Opportunities for Lazydays Holdings and Uxin

-0.57

Correlation Coefficient

Lazydays Holdings  Uxin

Excellent diversification

The 3 months correlation between Lazydays and Uxin is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lazydays Holdings and Uxin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxin 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 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 Lazydays Holdings i.e., Lazydays Holdings and Uxin go up and down completely randomly.

Pair Corralation between Lazydays Holdings and Uxin

If you would invest  152.00  in Uxin on September 17, 2024 and sell it today you would earn a total of  268.00  from holding Uxin or generate 176.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Lazydays Holdings  vs.  Uxin

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.

Uxin

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uxin are ranked lower than 12 (%) 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 Lazydays Holdings and Uxin

The main advantage of trading using opposite Lazydays Holdings and Uxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazydays Holdings 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 Lazydays Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.