Correlation Between Shimmick Common and U Power
Can any of the company-specific risk be diversified away by investing in both Shimmick Common 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 Shimmick Common and U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shimmick Common and U Power Limited, you can compare the effects of market volatilities on Shimmick Common 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 Shimmick Common with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shimmick Common and U Power.
Diversification Opportunities for Shimmick Common and U Power
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shimmick and UCAR is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shimmick Common 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 Shimmick Common 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 Shimmick Common 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 Shimmick Common i.e., Shimmick Common and U Power go up and down completely randomly.
Pair Corralation between Shimmick Common and U Power
Given the investment horizon of 90 days Shimmick Common is expected to generate 1.09 times more return on investment than U Power. However, Shimmick Common is 1.09 times more volatile than U Power Limited. It trades about 0.19 of its potential returns per unit of risk. U Power Limited is currently generating about -0.18 per unit of risk. If you would invest 197.00 in Shimmick Common on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Shimmick Common or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shimmick Common vs. U Power Limited
Performance |
| Timeline |
| Shimmick Common |
| U Power Limited |
Shimmick Common and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shimmick Common and U Power
The main advantage of trading using opposite Shimmick Common and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shimmick Common 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.| Shimmick Common vs. Magna International | Shimmick Common vs. Rivian Automotive | Shimmick Common vs. Li Auto | Shimmick Common vs. Modine Manufacturing |
| U Power vs. Advance Auto Parts | U Power vs. Tractor Supply | U Power vs. Genuine Parts Co | U Power vs. Five Below |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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