Correlation Between Getty Images and U Power
Can any of the company-specific risk be diversified away by investing in both Getty Images 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 Getty Images and U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Images Holdings and U Power Limited, you can compare the effects of market volatilities on Getty Images 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 Getty Images with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and U Power.
Diversification Opportunities for Getty Images and U Power
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Getty and UCAR is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings 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 Getty Images 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 Getty Images Holdings 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 Getty Images i.e., Getty Images and U Power go up and down completely randomly.
Pair Corralation between Getty Images and U Power
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the U Power. But the stock apears to be less risky and, when comparing its historical volatility, Getty Images Holdings is 1.42 times less risky than U Power. The stock trades about -0.38 of its potential returns per unit of risk. The U Power Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 716.00 in U Power Limited on September 12, 2024 and sell it today you would earn a total of 32.00 from holding U Power Limited or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. U Power Limited
Performance |
| Timeline |
| Getty Images Holdings |
| U Power Limited |
Getty Images and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and U Power
The main advantage of trading using opposite Getty Images and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images 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.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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