Correlation Between U Power and Marine Products
Can any of the company-specific risk be diversified away by investing in both U Power and Marine Products 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 Marine Products 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 Marine Products, you can compare the effects of market volatilities on U Power and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Marine Products.
Diversification Opportunities for U Power and Marine Products
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between UCAR and Marine is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of U Power i.e., U Power and Marine Products go up and down completely randomly.
Pair Corralation between U Power and Marine Products
Given the investment horizon of 90 days U Power Limited is expected to generate 27.64 times more return on investment than Marine Products. However, U Power is 27.64 times more volatile than Marine Products. It trades about 0.05 of its potential returns per unit of risk. Marine Products is currently generating about 0.01 per unit of risk. If you would invest 0.00 in U Power Limited on August 31, 2024 and sell it today you would earn a total of 616.00 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 | 85.36% |
| Values | Daily Returns |
U Power Limited vs. Marine Products
Performance |
| Timeline |
| U Power Limited |
| Marine Products |
U Power and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Marine Products
The main advantage of trading using opposite U Power and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Marine Products vs. Vision Marine Technologies | Marine Products vs. EZGO Technologies | Marine Products vs. LCI Industries | Marine Products vs. Curtiss Motorcycles |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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