Correlation Between International Business and Ucommune International
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Ucommune International, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Ucommune International.
Diversification Opportunities for International Business and Ucommune International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Ucommune is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and International Business 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 International Business Machines 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 International Business i.e., International Business and Ucommune International go up and down completely randomly.
Pair Corralation between International Business and Ucommune International
Considering the 90-day investment horizon International Business is expected to generate 76.96 times less return on investment than Ucommune International. But when comparing it to its historical volatility, International Business Machines is 69.99 times less risky than Ucommune International. It trades about 0.09 of its potential returns per unit of risk. Ucommune International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2.83 in Ucommune International on August 28, 2024 and sell it today you would lose (1.83) from holding Ucommune International or give up 64.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.42% |
| Values | Daily Returns |
International Business Machine vs. Ucommune International
Performance |
| Timeline |
| International Business |
| Ucommune International |
International Business and Ucommune International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Ucommune International
The main advantage of trading using opposite International Business and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
| Ucommune International vs. Plexus Corp | Ucommune International vs. Jabil Circuit | Ucommune International vs. Sanmina | Ucommune International vs. Methode Electronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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