Correlation Between U Power and Calmare Therapeutics
Can any of the company-specific risk be diversified away by investing in both U Power and Calmare Therapeutics 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 Calmare Therapeutics 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 Calmare Therapeutics, you can compare the effects of market volatilities on U Power and Calmare Therapeutics 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 Calmare Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Calmare Therapeutics.
Diversification Opportunities for U Power and Calmare Therapeutics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between UCAR and Calmare is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Calmare Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calmare Therapeutics 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 Calmare Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calmare Therapeutics has no effect on the direction of U Power i.e., U Power and Calmare Therapeutics go up and down completely randomly.
Pair Corralation between U Power and Calmare Therapeutics
Given the investment horizon of 90 days U Power Limited is expected to generate 2.8 times more return on investment than Calmare Therapeutics. However, U Power is 2.8 times more volatile than Calmare Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Calmare Therapeutics is currently generating about -0.5 per unit of risk. If you would invest 0.00 in U Power Limited on September 19, 2024 and sell it today you would earn a total of 665.00 from holding U Power Limited or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.95% |
| Values | Daily Returns |
U Power Limited vs. Calmare Therapeutics
Performance |
| Timeline |
| U Power Limited |
| Calmare Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
U Power and Calmare Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Calmare Therapeutics
The main advantage of trading using opposite U Power and Calmare Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Calmare Therapeutics 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 Calmare Therapeutics will offset losses from the drop in Calmare Therapeutics' long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Calmare Therapeutics vs. BioNTech SE | Calmare Therapeutics vs. Teleflex Incorporated | Calmare Therapeutics vs. Modine Manufacturing | Calmare Therapeutics vs. U Power Limited |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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