Correlation Between U Power and APPLE
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By analyzing existing cross correlation between U Power Limited and APPLE INC, you can compare the effects of market volatilities on U Power and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and APPLE.
Diversification Opportunities for U Power and APPLE
Very good diversification
The 3 months correlation between UCAR and APPLE is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC has no effect on the direction of U Power i.e., U Power and APPLE go up and down completely randomly.
Pair Corralation between U Power and APPLE
Given the investment horizon of 90 days U Power Limited is expected to under-perform the APPLE. In addition to that, U Power is 9.46 times more volatile than APPLE INC. It trades about -0.05 of its total potential returns per unit of risk. APPLE INC is currently generating about -0.01 per unit of volatility. If you would invest 8,504 in APPLE INC on August 24, 2024 and sell it today you would lose (9.00) from holding APPLE INC or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
U Power Limited vs. APPLE INC
Performance |
| Timeline |
| U Power Limited |
| APPLE INC |
U Power and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and APPLE
The main advantage of trading using opposite U Power and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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