Correlation Between U Power and Simon Property
Can any of the company-specific risk be diversified away by investing in both U Power and Simon Property 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 Simon Property 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 Simon Property Group, you can compare the effects of market volatilities on U Power and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Simon Property.
Diversification Opportunities for U Power and Simon Property
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UCAR and Simon is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of U Power i.e., U Power and Simon Property go up and down completely randomly.
Pair Corralation between U Power and Simon Property
Given the investment horizon of 90 days U Power Limited is expected to generate 48.69 times more return on investment than Simon Property. However, U Power is 48.69 times more volatile than Simon Property Group. It trades about 0.05 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.08 per unit of risk. If you would invest 0.00 in U Power Limited on September 3, 2024 and sell it today you would earn a total of 632.00 from holding U Power Limited or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.63% |
| Values | Daily Returns |
U Power Limited vs. Simon Property Group
Performance |
| Timeline |
| U Power Limited |
| Simon Property Group |
U Power and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Simon Property
The main advantage of trading using opposite U Power and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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