Correlation Between Shift Technologies and U Power
Can any of the company-specific risk be diversified away by investing in both Shift Technologies 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 Shift Technologies and U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shift Technologies and U Power Limited, you can compare the effects of market volatilities on Shift Technologies 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 Shift Technologies with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shift Technologies and U Power.
Diversification Opportunities for Shift Technologies and U Power
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shift and UCAR is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shift Technologies 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 Shift Technologies 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 Shift Technologies 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 Shift Technologies i.e., Shift Technologies and U Power go up and down completely randomly.
Pair Corralation between Shift Technologies and U Power
If you would invest 213.00 in Shift Technologies on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Shift Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Shift Technologies vs. U Power Limited
Performance |
| Timeline |
| Shift Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| U Power Limited |
Shift Technologies and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shift Technologies and U Power
The main advantage of trading using opposite Shift Technologies and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shift Technologies 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.| Shift Technologies vs. Carvana Co | Shift Technologies vs. CarMax Inc | Shift Technologies vs. U Power Limited | Shift Technologies vs. Vroom Inc |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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