Correlation Between Avalon GloboCare and Ucommune International
Can any of the company-specific risk be diversified away by investing in both Avalon GloboCare and Ucommune International 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 Avalon GloboCare and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avalon GloboCare Corp and Ucommune International, you can compare the effects of market volatilities on Avalon GloboCare and Ucommune International 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 Avalon GloboCare with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalon GloboCare and Ucommune International.
Diversification Opportunities for Avalon GloboCare and Ucommune International
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avalon and Ucommune is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Avalon GloboCare Corp and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and Avalon GloboCare 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 Avalon GloboCare Corp are associated (or correlated) with Ucommune International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ucommune International has no effect on the direction of Avalon GloboCare i.e., Avalon GloboCare and Ucommune International go up and down completely randomly.
Pair Corralation between Avalon GloboCare and Ucommune International
Given the investment horizon of 90 days Avalon GloboCare Corp is expected to generate 2.26 times more return on investment than Ucommune International. However, Avalon GloboCare is 2.26 times more volatile than Ucommune International. It trades about 0.01 of its potential returns per unit of risk. Ucommune International is currently generating about -0.04 per unit of risk. If you would invest 4,950 in Avalon GloboCare Corp on August 28, 2024 and sell it today you would lose (4,680) from holding Avalon GloboCare Corp or give up 94.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avalon GloboCare Corp vs. Ucommune International
Performance |
| Timeline |
| Avalon GloboCare Corp |
| Ucommune International |
Avalon GloboCare and Ucommune International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avalon GloboCare and Ucommune International
The main advantage of trading using opposite Avalon GloboCare and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalon GloboCare position performs unexpectedly, Ucommune International 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 Ucommune International will offset losses from the drop in Ucommune International's long position.| Avalon GloboCare vs. Ascendas India Trust | Avalon GloboCare vs. Asia Pptys | Avalon GloboCare vs. Adler Group SA | Avalon GloboCare vs. Aztec Land Comb |
| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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