Correlation Between U Power and PRECISION
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By analyzing existing cross correlation between U Power Limited and PRECISION CASTPARTS P, you can compare the effects of market volatilities on U Power and PRECISION 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 PRECISION. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and PRECISION.
Diversification Opportunities for U Power and PRECISION
Poor diversification
The 3 months correlation between UCAR and PRECISION is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and PRECISION CASTPARTS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRECISION CASTPARTS 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 PRECISION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRECISION CASTPARTS has no effect on the direction of U Power i.e., U Power and PRECISION go up and down completely randomly.
Pair Corralation between U Power and PRECISION
Given the investment horizon of 90 days U Power Limited is expected to generate 2.01 times more return on investment than PRECISION. However, U Power is 2.01 times more volatile than PRECISION CASTPARTS P. It trades about 0.21 of its potential returns per unit of risk. PRECISION CASTPARTS P is currently generating about 0.17 per unit of risk. If you would invest 643.00 in U Power Limited on September 14, 2024 and sell it today you would earn a total of 105.00 from holding U Power Limited or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 52.38% |
| Values | Daily Returns |
U Power Limited vs. PRECISION CASTPARTS P
Performance |
| Timeline |
| U Power Limited |
| PRECISION CASTPARTS |
U Power and PRECISION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and PRECISION
The main advantage of trading using opposite U Power and PRECISION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, PRECISION 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 PRECISION will offset losses from the drop in PRECISION's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| PRECISION vs. AEP TEX INC | PRECISION vs. US BANK NATIONAL | PRECISION vs. Applied Blockchain | PRECISION vs. BigBearai 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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