Correlation Between U Power and BOEING
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By analyzing existing cross correlation between U Power Limited and BOEING CO, you can compare the effects of market volatilities on U Power and BOEING 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 BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and BOEING.
Diversification Opportunities for U Power and BOEING
Very good diversification
The 3 months correlation between UCAR and BOEING is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO 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 BOEING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CO has no effect on the direction of U Power i.e., U Power and BOEING go up and down completely randomly.
Pair Corralation between U Power and BOEING
Given the investment horizon of 90 days U Power is expected to generate 1.7 times less return on investment than BOEING. But when comparing it to its historical volatility, U Power Limited is 1.19 times less risky than BOEING. It trades about 0.05 of its potential returns per unit of risk. BOEING CO is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,285 in BOEING CO on September 12, 2024 and sell it today you would earn a total of 407.00 from holding BOEING CO or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.2% |
| Values | Daily Returns |
U Power Limited vs. BOEING CO
Performance |
| Timeline |
| U Power Limited |
| BOEING CO |
U Power and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and BOEING
The main advantage of trading using opposite U Power and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, BOEING 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 BOEING will offset losses from the drop in BOEING's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| BOEING vs. Bassett Furniture Industries | BOEING vs. Hudson Pacific Properties | BOEING vs. LGI Homes | BOEING vs. GameStop Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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