Correlation Between U Power and TG Venture
Can any of the company-specific risk be diversified away by investing in both U Power and TG Venture 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 TG Venture 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 TG Venture Acquisition, you can compare the effects of market volatilities on U Power and TG Venture 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 TG Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and TG Venture.
Diversification Opportunities for U Power and TG Venture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UCAR and TGVCU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and TG Venture Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG Venture Acquisition 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 TG Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Venture Acquisition has no effect on the direction of U Power i.e., U Power and TG Venture go up and down completely randomly.
Pair Corralation between U Power and TG Venture
If you would invest 637.00 in U Power Limited on September 12, 2024 and sell it today you would earn a total of 83.00 from holding U Power Limited or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
U Power Limited vs. TG Venture Acquisition
Performance |
| Timeline |
| U Power Limited |
| TG Venture Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
U Power and TG Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and TG Venture
The main advantage of trading using opposite U Power and TG Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, TG Venture 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 TG Venture will offset losses from the drop in TG Venture's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| TG Venture vs. Molson Coors Brewing | TG Venture vs. High Performance Beverages | TG Venture vs. HE Equipment Services | TG Venture vs. Hertz Global Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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