Correlation Between U Power and 207597EG6
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By analyzing existing cross correlation between U Power Limited and CONNECTICUT LT PWR, you can compare the effects of market volatilities on U Power and 207597EG6 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 207597EG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and 207597EG6.
Diversification Opportunities for U Power and 207597EG6
Significant diversification
The 3 months correlation between UCAR and 207597EG6 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597EG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of U Power i.e., U Power and 207597EG6 go up and down completely randomly.
Pair Corralation between U Power and 207597EG6
Given the investment horizon of 90 days U Power is expected to generate 3.8 times less return on investment than 207597EG6. But when comparing it to its historical volatility, U Power Limited is 1.79 times less risky than 207597EG6. It trades about 0.05 of its potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,646 in CONNECTICUT LT PWR on September 13, 2024 and sell it today you would lose (358.00) from holding CONNECTICUT LT PWR or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.82% |
| Values | Daily Returns |
U Power Limited vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| U Power Limited |
| CONNECTICUT LT PWR |
U Power and 207597EG6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and 207597EG6
The main advantage of trading using opposite U Power and 207597EG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, 207597EG6 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 207597EG6 will offset losses from the drop in 207597EG6's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| 207597EG6 vs. Sun Country Airlines | 207597EG6 vs. U Power Limited | 207597EG6 vs. Proficient Auto Logistics, | 207597EG6 vs. Mesa Air Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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