Correlation Between Re Max and Ucommune International
Can any of the company-specific risk be diversified away by investing in both Re Max 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 Re Max and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Re Max Holding and Ucommune International, you can compare the effects of market volatilities on Re Max 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 Re Max with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Re Max and Ucommune International.
Diversification Opportunities for Re Max and Ucommune International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between RMAX and Ucommune is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Re Max Holding and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and Re Max 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 Re Max Holding 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 Re Max i.e., Re Max and Ucommune International go up and down completely randomly.
Pair Corralation between Re Max and Ucommune International
Given the investment horizon of 90 days Re Max Holding is expected to generate 0.5 times more return on investment than Ucommune International. However, Re Max Holding is 2.0 times less risky than Ucommune International. It trades about -0.01 of its potential returns per unit of risk. Ucommune International is currently generating about -0.03 per unit of risk. If you would invest 1,917 in Re Max Holding on August 31, 2024 and sell it today you would lose (601.00) from holding Re Max Holding or give up 31.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Re Max Holding vs. Ucommune International
Performance |
| Timeline |
| Re Max Holding |
| Ucommune International |
Re Max and Ucommune International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Re Max and Ucommune International
The main advantage of trading using opposite Re Max and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Re Max 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.| Re Max vs. Marcus Millichap | Re Max vs. Frp Holdings Ord | Re Max vs. Maui Land Pineapple | Re Max vs. Transcontinental Realty Investors |
| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |