Correlation Between Ucommune International and American Healthcare
Can any of the company-specific risk be diversified away by investing in both Ucommune International and American Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ucommune International and American Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and American Healthcare REIT,, you can compare the effects of market volatilities on Ucommune International and American Healthcare 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 Ucommune International with a short position of American Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and American Healthcare.
Diversification Opportunities for Ucommune International and American Healthcare
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ucommune and American is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and American Healthcare REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Healthcare REIT, and Ucommune International 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 Ucommune International are associated (or correlated) with American Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Healthcare REIT, has no effect on the direction of Ucommune International i.e., Ucommune International and American Healthcare go up and down completely randomly.
Pair Corralation between Ucommune International and American Healthcare
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the American Healthcare. But the etf apears to be less risky and, when comparing its historical volatility, Ucommune International is 1.03 times less risky than American Healthcare. The etf trades about -0.01 of its potential returns per unit of risk. The American Healthcare REIT, is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,636 in American Healthcare REIT, on August 30, 2024 and sell it today you would earn a total of 321.00 from holding American Healthcare REIT, or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. American Healthcare REIT,
Performance |
| Timeline |
| Ucommune International |
| American Healthcare REIT, |
Ucommune International and American Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and American Healthcare
The main advantage of trading using opposite Ucommune International and American Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, American Healthcare 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 American Healthcare will offset losses from the drop in American Healthcare's long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp |
| American Healthcare vs. Boston Properties | American Healthcare vs. Douglas Emmett | American Healthcare vs. Kilroy Realty Corp | American Healthcare vs. Highwoods Properties |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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