Correlation Between FDG Electric and U Power
Can any of the company-specific risk be diversified away by investing in both FDG Electric and U Power 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 FDG Electric and U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and U Power Limited, you can compare the effects of market volatilities on FDG Electric and U Power 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 FDG Electric with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and U Power.
Diversification Opportunities for FDG Electric and U Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and UCAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and U Power Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Power Limited and FDG Electric 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 FDG Electric Vehicles are associated (or correlated) with U Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Power Limited has no effect on the direction of FDG Electric i.e., FDG Electric and U Power go up and down completely randomly.
Pair Corralation between FDG Electric and U Power
If you would invest 0.01 in FDG Electric Vehicles on August 28, 2024 and sell it today you would earn a total of 0.00 from holding FDG Electric Vehicles or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FDG Electric Vehicles vs. U Power Limited
Performance |
| Timeline |
| FDG Electric Vehicles |
| U Power Limited |
FDG Electric and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and U Power
The main advantage of trading using opposite FDG Electric and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, U Power 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 U Power will offset losses from the drop in U Power's long position.| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Lear Corporation | FDG Electric vs. BorgWarner |
| U Power vs. Kingsway Financial Services | U Power vs. KAR Auction Services | U Power vs. Cango Inc | U Power vs. Vroom Inc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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