Correlation Between Ucommune International and Avalon GloboCare
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Avalon GloboCare 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 Avalon GloboCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Avalon GloboCare Corp, you can compare the effects of market volatilities on Ucommune International and Avalon GloboCare 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 Avalon GloboCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Avalon GloboCare.
Diversification Opportunities for Ucommune International and Avalon GloboCare
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ucommune and Avalon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Avalon GloboCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalon GloboCare Corp 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 Avalon GloboCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalon GloboCare Corp has no effect on the direction of Ucommune International i.e., Ucommune International and Avalon GloboCare go up and down completely randomly.
Pair Corralation between Ucommune International and Avalon GloboCare
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Avalon GloboCare. But the etf apears to be less risky and, when comparing its historical volatility, Ucommune International is 1.88 times less risky than Avalon GloboCare. The etf trades about -0.11 of its potential returns per unit of risk. The Avalon GloboCare Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 343.00 in Avalon GloboCare Corp on November 3, 2024 and sell it today you would lose (13.00) from holding Avalon GloboCare Corp or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Avalon GloboCare Corp
Performance |
| Timeline |
| Ucommune International |
| Avalon GloboCare Corp |
Ucommune International and Avalon GloboCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Avalon GloboCare
The main advantage of trading using opposite Ucommune International and Avalon GloboCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Avalon GloboCare 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 Avalon GloboCare will offset losses from the drop in Avalon GloboCare's long position.| Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp | Ucommune International vs. Avalon GloboCare Corp |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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