Correlation Between U Power and Caribbean Investment
Can any of the company-specific risk be diversified away by investing in both U Power and Caribbean Investment 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 U Power and Caribbean Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Power Limited and Caribbean Investment Holdings, you can compare the effects of market volatilities on U Power and Caribbean Investment 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 U Power with a short position of Caribbean Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Caribbean Investment.
Diversification Opportunities for U Power and Caribbean Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UCAR and Caribbean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Caribbean Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caribbean Investment and U Power 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 U Power Limited are associated (or correlated) with Caribbean Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caribbean Investment has no effect on the direction of U Power i.e., U Power and Caribbean Investment go up and down completely randomly.
Pair Corralation between U Power and Caribbean Investment
If you would invest 644.00 in U Power Limited on September 20, 2024 and sell it today you would earn a total of 21.00 from holding U Power Limited or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
U Power Limited vs. Caribbean Investment Holdings
Performance |
| Timeline |
| U Power Limited |
| Caribbean Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
U Power and Caribbean Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Caribbean Investment
The main advantage of trading using opposite U Power and Caribbean Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Caribbean Investment 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 Caribbean Investment will offset losses from the drop in Caribbean Investment's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Caribbean Investment vs. Cars Inc | Caribbean Investment vs. U Power Limited | Caribbean Investment vs. Reservoir Media | Caribbean Investment vs. Weibo 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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