Correlation Between U Power and SolarBank
Can any of the company-specific risk be diversified away by investing in both U Power and SolarBank 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 SolarBank 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 SolarBank, you can compare the effects of market volatilities on U Power and SolarBank 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 SolarBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and SolarBank.
Diversification Opportunities for U Power and SolarBank
Excellent diversification
The 3 months correlation between UCAR and SolarBank is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and SolarBank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarBank 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 SolarBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarBank has no effect on the direction of U Power i.e., U Power and SolarBank go up and down completely randomly.
Pair Corralation between U Power and SolarBank
If you would invest 650.00 in SolarBank on August 31, 2024 and sell it today you would earn a total of 0.00 from holding SolarBank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
U Power Limited vs. SolarBank
Performance |
| Timeline |
| U Power Limited |
| SolarBank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
U Power and SolarBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and SolarBank
The main advantage of trading using opposite U Power and SolarBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, SolarBank 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 SolarBank will offset losses from the drop in SolarBank's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| SolarBank vs. Cars Inc | SolarBank vs. Visteon Corp | SolarBank vs. U Power Limited | SolarBank vs. PennantPark Floating Rate |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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