Correlation Between Calmare Therapeutics and U Power
Can any of the company-specific risk be diversified away by investing in both Calmare Therapeutics 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 Calmare Therapeutics and U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calmare Therapeutics and U Power Limited, you can compare the effects of market volatilities on Calmare Therapeutics 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 Calmare Therapeutics with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calmare Therapeutics and U Power.
Diversification Opportunities for Calmare Therapeutics and U Power
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calmare and UCAR is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Calmare Therapeutics 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 Calmare Therapeutics 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 Calmare Therapeutics 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 Calmare Therapeutics i.e., Calmare Therapeutics and U Power go up and down completely randomly.
Pair Corralation between Calmare Therapeutics and U Power
If you would invest 28,700 in U Power Limited on September 19, 2024 and sell it today you would lose (28,035) from holding U Power Limited or give up 97.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.34% |
| Values | Daily Returns |
Calmare Therapeutics vs. U Power Limited
Performance |
| Timeline |
| Calmare Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| U Power Limited |
Calmare Therapeutics and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calmare Therapeutics and U Power
The main advantage of trading using opposite Calmare Therapeutics and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calmare Therapeutics 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.| Calmare Therapeutics vs. BioNTech SE | Calmare Therapeutics vs. Teleflex Incorporated | Calmare Therapeutics vs. Modine Manufacturing | Calmare Therapeutics vs. U Power Limited |
| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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