Correlation Between UHF Logistics and Carefree
Can any of the company-specific risk be diversified away by investing in both UHF Logistics and Carefree 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 UHF Logistics and Carefree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UHF Logistics Group and Carefree Group, you can compare the effects of market volatilities on UHF Logistics and Carefree 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 UHF Logistics with a short position of Carefree. Check out your portfolio center. Please also check ongoing floating volatility patterns of UHF Logistics and Carefree.
Diversification Opportunities for UHF Logistics and Carefree
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UHF and Carefree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UHF Logistics Group and Carefree Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carefree Group and UHF Logistics 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 UHF Logistics Group are associated (or correlated) with Carefree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carefree Group has no effect on the direction of UHF Logistics i.e., UHF Logistics and Carefree go up and down completely randomly.
Pair Corralation between UHF Logistics and Carefree
If you would invest 17.00 in UHF Logistics Group on August 31, 2024 and sell it today you would lose (13.80) from holding UHF Logistics Group or give up 81.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UHF Logistics Group vs. Carefree Group
Performance |
| Timeline |
| UHF Logistics Group |
| Carefree Group |
UHF Logistics and Carefree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UHF Logistics and Carefree
The main advantage of trading using opposite UHF Logistics and Carefree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UHF Logistics position performs unexpectedly, Carefree 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 Carefree will offset losses from the drop in Carefree's long position.| UHF Logistics vs. American Leisure Holdings | UHF Logistics vs. Supurva Healthcare Group | UHF Logistics vs. China Health Management | UHF Logistics vs. Embrace Change Acquisition |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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