Correlation Between Ucommune International and American Homes
Can any of the company-specific risk be diversified away by investing in both Ucommune International and American Homes 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 Homes 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 Homes 4, you can compare the effects of market volatilities on Ucommune International and American Homes 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 Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and American Homes.
Diversification Opportunities for Ucommune International and American Homes
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ucommune and American is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and American Homes 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Homes 4 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 Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Homes 4 has no effect on the direction of Ucommune International i.e., Ucommune International and American Homes go up and down completely randomly.
Pair Corralation between Ucommune International and American Homes
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the American Homes. In addition to that, Ucommune International is 8.67 times more volatile than American Homes 4. It trades about -0.03 of its total potential returns per unit of risk. American Homes 4 is currently generating about 0.02 per unit of volatility. If you would invest 2,244 in American Homes 4 on August 31, 2024 and sell it today you would earn a total of 140.00 from holding American Homes 4 or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. American Homes 4
Performance |
| Timeline |
| Ucommune International |
| American Homes 4 |
Ucommune International and American Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and American Homes
The main advantage of trading using opposite Ucommune International and American Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, American Homes 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 Homes will offset losses from the drop in American Homes' long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Avalon GloboCare Corp |
| American Homes vs. Mid America Apartment Communities | American Homes vs. UMH Properties | American Homes vs. Clipper Realty | American Homes vs. American Homes 4 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |