Correlation Between Boston Beer and U Power
Can any of the company-specific risk be diversified away by investing in both Boston Beer 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 Boston Beer and U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Beer and U Power Limited, you can compare the effects of market volatilities on Boston Beer 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 Boston Beer with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and U Power.
Diversification Opportunities for Boston Beer and U Power
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Boston and UCAR is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer 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 Boston Beer 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 Boston Beer 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 Boston Beer i.e., Boston Beer and U Power go up and down completely randomly.
Pair Corralation between Boston Beer and U Power
Considering the 90-day investment horizon Boston Beer is expected to under-perform the U Power. But the stock apears to be less risky and, when comparing its historical volatility, Boston Beer is 30.49 times less risky than U Power. The stock trades about 0.0 of its potential returns per unit of risk. The U Power Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in U Power Limited on August 30, 2024 and sell it today you would earn a total of 616.00 from holding U Power Limited or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.22% |
| Values | Daily Returns |
Boston Beer vs. U Power Limited
Performance |
| Timeline |
| Boston Beer |
| U Power Limited |
Boston Beer and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and U Power
The main advantage of trading using opposite Boston Beer and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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.| Boston Beer vs. Fomento Economico Mexicano | Boston Beer vs. Carlsberg AS | Boston Beer vs. Molson Coors Beverage | Boston Beer vs. Molson Coors Brewing |
| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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