Correlation Between U Power and Consumer Automotive
Can any of the company-specific risk be diversified away by investing in both U Power and Consumer Automotive 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 Consumer Automotive 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 Consumer Automotive Finance, you can compare the effects of market volatilities on U Power and Consumer Automotive 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 Consumer Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Consumer Automotive.
Diversification Opportunities for U Power and Consumer Automotive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UCAR and Consumer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Consumer Automotive Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Automotive 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 Consumer Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Automotive has no effect on the direction of U Power i.e., U Power and Consumer Automotive go up and down completely randomly.
Pair Corralation between U Power and Consumer Automotive
If you would invest 0.01 in Consumer Automotive Finance on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Consumer Automotive Finance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
U Power Limited vs. Consumer Automotive Finance
Performance |
| Timeline |
| U Power Limited |
| Consumer Automotive |
U Power and Consumer Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Consumer Automotive
The main advantage of trading using opposite U Power and Consumer Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Consumer Automotive 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 Consumer Automotive will offset losses from the drop in Consumer Automotive's long position.| U Power vs. Advance Auto Parts | U Power vs. Tractor Supply | U Power vs. Genuine Parts Co | U Power vs. Five Below |
| Consumer Automotive vs. Grand Baoxin Auto | Consumer Automotive vs. AutoCanada | Consumer Automotive vs. Kaixin Auto Holdings | Consumer Automotive 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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