Correlation Between Marine Products and U Power
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and U Power Limited, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and U Power.
Diversification Opportunities for Marine Products and U Power
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marine and UCAR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products 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 Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and U Power go up and down completely randomly.
Pair Corralation between Marine Products and U Power
Considering the 90-day investment horizon Marine Products is expected to generate 56.94 times less return on investment than U Power. But when comparing it to its historical volatility, Marine Products is 25.16 times less risky than U Power. It trades about 0.02 of its potential returns per unit of risk. U Power Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,788 in U Power Limited on September 2, 2024 and sell it today you would lose (3,156) from holding U Power Limited or give up 83.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. U Power Limited
Performance |
| Timeline |
| Marine Products |
| U Power Limited |
Marine Products and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and U Power
The main advantage of trading using opposite Marine Products and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. Thor Industries |
| U Power vs. Advance Auto Parts | U Power vs. Tractor Supply | U Power vs. Genuine Parts Co | U Power vs. Five Below |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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