Correlation Between U Power and Sapiens International
Can any of the company-specific risk be diversified away by investing in both U Power and Sapiens International 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 Sapiens International 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 Sapiens International, you can compare the effects of market volatilities on U Power and Sapiens International 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 Sapiens International. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Sapiens International.
Diversification Opportunities for U Power and Sapiens International
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UCAR and Sapiens is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Sapiens International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapiens International 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 Sapiens International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapiens International has no effect on the direction of U Power i.e., U Power and Sapiens International go up and down completely randomly.
Pair Corralation between U Power and Sapiens International
Given the investment horizon of 90 days U Power Limited is expected to generate 1.65 times more return on investment than Sapiens International. However, U Power is 1.65 times more volatile than Sapiens International. It trades about 0.06 of its potential returns per unit of risk. Sapiens International is currently generating about -0.04 per unit of risk. If you would invest 537.00 in U Power Limited on August 29, 2024 and sell it today you would earn a total of 111.00 from holding U Power Limited or generate 20.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Power Limited vs. Sapiens International
Performance |
| Timeline |
| U Power Limited |
| Sapiens International |
U Power and Sapiens International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Sapiens International
The main advantage of trading using opposite U Power and Sapiens International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Sapiens International 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 Sapiens International will offset losses from the drop in Sapiens International's long position.| U Power vs. Kingsway Financial Services | U Power vs. KAR Auction Services | U Power vs. Cango Inc | U Power vs. Vroom Inc |
| Sapiens International vs. OLB Group | Sapiens International vs. Friendable | Sapiens International vs. KwikClick |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |