Correlation Between U Power and Flagstar Bancorp
Can any of the company-specific risk be diversified away by investing in both U Power and Flagstar Bancorp 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 Flagstar Bancorp 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 Flagstar Bancorp, you can compare the effects of market volatilities on U Power and Flagstar Bancorp 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 Flagstar Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Flagstar Bancorp.
Diversification Opportunities for U Power and Flagstar Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UCAR and Flagstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Flagstar Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Bancorp 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 Flagstar Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Bancorp has no effect on the direction of U Power i.e., U Power and Flagstar Bancorp go up and down completely randomly.
Pair Corralation between U Power and Flagstar Bancorp
If you would invest 700.00 in U Power Limited on September 15, 2024 and sell it today you would earn a total of 44.00 from holding U Power Limited or generate 6.29% 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. Flagstar Bancorp
Performance |
| Timeline |
| U Power Limited |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
U Power and Flagstar Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Flagstar Bancorp
The main advantage of trading using opposite U Power and Flagstar Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Flagstar Bancorp 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 Flagstar Bancorp will offset losses from the drop in Flagstar Bancorp's long position.| U Power vs. AutoNation | U Power vs. OReilly Automotive | U Power vs. Advance Auto Parts | U Power vs. Ross Stores |
| Flagstar Bancorp vs. ICC Holdings | Flagstar Bancorp vs. The Hanover Insurance | Flagstar Bancorp vs. Cincinnati Financial | Flagstar Bancorp vs. East Africa Metals |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |