Correlation Between U Power and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both U Power and Tianjin Capital 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 Tianjin Capital 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 Tianjin Capital Environmental, you can compare the effects of market volatilities on U Power and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Tianjin Capital.
Diversification Opportunities for U Power and Tianjin Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UCAR and Tianjin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of U Power i.e., U Power and Tianjin Capital go up and down completely randomly.
Pair Corralation between U Power and Tianjin Capital
If you would invest 252.00 in U Power Limited on January 12, 2025 and sell it today you would earn a total of 16.00 from holding U Power Limited or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Power Limited vs. Tianjin Capital Environmental
Performance |
| Timeline |
| U Power Limited |
| Tianjin Capital Envi |
U Power and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Tianjin Capital
The main advantage of trading using opposite U Power and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Tianjin Capital vs. Boston Properties | Tianjin Capital vs. Erf Wireless | Tianjin Capital vs. JBG SMITH Properties | Tianjin Capital vs. Hudson Pacific Properties |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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