Correlation Between Rafael Holdings and Ucommune International
Can any of the company-specific risk be diversified away by investing in both Rafael Holdings 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 Rafael Holdings and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rafael Holdings Class and Ucommune International, you can compare the effects of market volatilities on Rafael Holdings 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 Rafael Holdings with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rafael Holdings and Ucommune International.
Diversification Opportunities for Rafael Holdings and Ucommune International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rafael and Ucommune is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Rafael Holdings Class and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and Rafael Holdings 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 Rafael Holdings Class 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 Rafael Holdings i.e., Rafael Holdings and Ucommune International go up and down completely randomly.
Pair Corralation between Rafael Holdings and Ucommune International
Considering the 90-day investment horizon Rafael Holdings Class is expected to generate 0.94 times more return on investment than Ucommune International. However, Rafael Holdings Class is 1.06 times less risky than Ucommune International. It trades about 0.07 of its potential returns per unit of risk. Ucommune International is currently generating about 0.0 per unit of risk. If you would invest 201.00 in Rafael Holdings Class on November 18, 2024 and sell it today you would earn a total of 7.00 from holding Rafael Holdings Class or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rafael Holdings Class vs. Ucommune International
Performance |
| Timeline |
| Rafael Holdings Class |
| Ucommune International |
Rafael Holdings and Ucommune International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rafael Holdings and Ucommune International
The main advantage of trading using opposite Rafael Holdings and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rafael Holdings 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.| Rafael Holdings vs. Fangdd Network Group | Rafael Holdings vs. IRSA Inversiones Y | Rafael Holdings vs. RMR Group | Rafael Holdings vs. Kennedy Wilson Holdings |
| Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp | Ucommune International vs. Avalon GloboCare Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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