Correlation Between U Haul and Zoomcar Holdings

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

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

Diversification Opportunities for U Haul and Zoomcar Holdings

0.81

Correlation Coefficient

U Haul  Zoomcar Holdings

Very poor diversification

The 3 months correlation between UHAL and Zoomcar is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Zoomcar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomcar Holdings and U Haul 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 U Haul Holding are associated (or correlated) with Zoomcar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomcar Holdings has no effect on the direction of U Haul i.e., U Haul and Zoomcar Holdings go up and down completely randomly.

Pair Corralation between U Haul and Zoomcar Holdings

Given the investment horizon of 90 days U Haul Holding is expected to generate 0.11 times more return on investment than Zoomcar Holdings. However, U Haul Holding is 9.31 times less risky than Zoomcar Holdings. It trades about 0.01 of its potential returns per unit of risk. Zoomcar Holdings is currently generating about -0.03 per unit of risk. If you would invest  6,168  in U Haul Holding on February 3, 2025 and sell it today you would earn a total of  324.00  from holding U Haul Holding or generate 5.25% return on investment over 90 days.

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

U Haul Holding  vs.  Zoomcar Holdings

U Haul Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Zoomcar Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoomcar Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Zoomcar Holdings is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with U Haul and Zoomcar Holdings

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

The idea behind U Haul Holding and Zoomcar Holdings 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.