Correlation Between U Power and KRAFT
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By analyzing existing cross correlation between U Power Limited and KRAFT FOODS GROUP, you can compare the effects of market volatilities on U Power and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and KRAFT.
Diversification Opportunities for U Power and KRAFT
Very good diversification
The 3 months correlation between UCAR and KRAFT is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and KRAFT FOODS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT FOODS GROUP 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT FOODS GROUP has no effect on the direction of U Power i.e., U Power and KRAFT go up and down completely randomly.
Pair Corralation between U Power and KRAFT
Given the investment horizon of 90 days U Power Limited is expected to generate 4.65 times more return on investment than KRAFT. However, U Power is 4.65 times more volatile than KRAFT FOODS GROUP. It trades about 0.04 of its potential returns per unit of risk. KRAFT FOODS GROUP is currently generating about 0.0 per unit of risk. If you would invest 641.00 in U Power Limited on September 12, 2024 and sell it today you would earn a total of 79.00 from holding U Power Limited or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.1% |
| Values | Daily Returns |
U Power Limited vs. KRAFT FOODS GROUP
Performance |
| Timeline |
| U Power Limited |
| KRAFT FOODS GROUP |
U Power and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and KRAFT
The main advantage of trading using opposite U Power and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| KRAFT vs. Church Dwight | KRAFT vs. RBC Bearings Incorporated | KRAFT vs. Meiwu Technology Co | KRAFT vs. National Vision 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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