Correlation Between U Power and Lion One

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both U Power and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on U Power and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Lion One.

Diversification Opportunities for U Power and Lion One

-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between UCAR and Lion is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of U Power i.e., U Power and Lion One go up and down completely randomly.

Pair Corralation between U Power and Lion One

Given the investment horizon of 90 days U Power Limited is expected to under-perform the Lion One. In addition to that, U Power is 1.82 times more volatile than Lion One Metals. It trades about -0.35 of its total potential returns per unit of risk. Lion One Metals is currently generating about 0.29 per unit of volatility. If you would invest  19.00  in Lion One Metals on November 3, 2024 and sell it today you would earn a total of  8.00  from holding Lion One Metals or generate 42.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

U Power Limited  vs.  Lion One Metals

 Performance 
       Timeline  
U Power Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days U Power Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Lion One Metals 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Lion One Metals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Lion One reported solid returns over the last few months and may actually be approaching a breakup point.

U Power and Lion One Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with U Power and Lion One

The main advantage of trading using opposite U Power and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.
The idea behind U Power Limited and Lion One Metals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites