Correlation Between U Power and Bridgetown Holdings
Can any of the company-specific risk be diversified away by investing in both U Power and Bridgetown Holdings 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 Bridgetown Holdings 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 Bridgetown Holdings, you can compare the effects of market volatilities on U Power and Bridgetown Holdings 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 Bridgetown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Bridgetown Holdings.
Diversification Opportunities for U Power and Bridgetown Holdings
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UCAR and Bridgetown is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Bridgetown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgetown Holdings 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 Bridgetown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgetown Holdings has no effect on the direction of U Power i.e., U Power and Bridgetown Holdings go up and down completely randomly.
Pair Corralation between U Power and Bridgetown Holdings
If you would invest 537.00 in U Power Limited on September 3, 2024 and sell it today you would earn a total of 95.00 from holding U Power Limited or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.6% |
| Values | Daily Returns |
U Power Limited vs. Bridgetown Holdings
Performance |
| Timeline |
| U Power Limited |
| Bridgetown Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
U Power and Bridgetown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Bridgetown Holdings
The main advantage of trading using opposite U Power and Bridgetown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Bridgetown Holdings 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 Bridgetown Holdings will offset losses from the drop in Bridgetown Holdings' long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Bridgetown Holdings vs. Bassett Furniture Industries | Bridgetown Holdings vs. Alvotech | Bridgetown Holdings vs. Repligen | Bridgetown Holdings vs. JBG SMITH Properties |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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