Correlation Between U Power and Icici
Can any of the company-specific risk be diversified away by investing in both U Power and Icici 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 Icici 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 Icici, you can compare the effects of market volatilities on U Power and Icici 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 Icici. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Icici.
Diversification Opportunities for U Power and Icici
Pay attention - limited upside
The 3 months correlation between UCAR and Icici is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Icici in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icici 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 Icici. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icici has no effect on the direction of U Power i.e., U Power and Icici go up and down completely randomly.
Pair Corralation between U Power and Icici
If you would invest 716.00 in U Power Limited on September 12, 2024 and sell it today you would earn a total of 32.00 from holding U Power Limited or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
U Power Limited vs. Icici
Performance |
| Timeline |
| U Power Limited |
| Icici |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
U Power and Icici Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Icici
The main advantage of trading using opposite U Power and Icici positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Icici 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 Icici will offset losses from the drop in Icici's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Icici vs. Avis Budget Group | Icici vs. Hertz Global Holdings | Icici vs. Chipotle Mexican Grill | Icici vs. Global Ship Lease |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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