Correlation Between U Power and Jiuzi Holdings
Can any of the company-specific risk be diversified away by investing in both U Power and Jiuzi 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 Jiuzi 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 Jiuzi Holdings, you can compare the effects of market volatilities on U Power and Jiuzi 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 Jiuzi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Jiuzi Holdings.
Diversification Opportunities for U Power and Jiuzi Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UCAR and Jiuzi is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Jiuzi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiuzi 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 Jiuzi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiuzi Holdings has no effect on the direction of U Power i.e., U Power and Jiuzi Holdings go up and down completely randomly.
Pair Corralation between U Power and Jiuzi Holdings
Given the investment horizon of 90 days U Power Limited is expected to generate 0.6 times more return on investment than Jiuzi Holdings. However, U Power Limited is 1.67 times less risky than Jiuzi Holdings. It trades about 0.04 of its potential returns per unit of risk. Jiuzi Holdings is currently generating about -0.07 per unit of risk. If you would invest 569.00 in U Power Limited on August 28, 2024 and sell it today you would earn a total of 48.00 from holding U Power Limited or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Power Limited vs. Jiuzi Holdings
Performance |
| Timeline |
| U Power Limited |
| Jiuzi Holdings |
U Power and Jiuzi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Jiuzi Holdings
The main advantage of trading using opposite U Power and Jiuzi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Jiuzi 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 Jiuzi Holdings will offset losses from the drop in Jiuzi Holdings' long position.| U Power vs. Kingsway Financial Services | U Power vs. KAR Auction Services | U Power vs. Cango Inc | U Power vs. Vroom Inc |
| Jiuzi Holdings vs. Kingsway Financial Services | Jiuzi Holdings vs. KAR Auction Services | Jiuzi Holdings vs. Cango Inc | Jiuzi Holdings vs. Vroom Inc |
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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