Correlation Between Ucommune International and Apple Hospitality
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Apple Hospitality 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 Apple Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Apple Hospitality REIT, you can compare the effects of market volatilities on Ucommune International and Apple Hospitality 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 Apple Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Apple Hospitality.
Diversification Opportunities for Ucommune International and Apple Hospitality
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ucommune and Apple is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Apple Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Hospitality 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 Apple Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Hospitality REIT has no effect on the direction of Ucommune International i.e., Ucommune International and Apple Hospitality go up and down completely randomly.
Pair Corralation between Ucommune International and Apple Hospitality
Allowing for the 90-day total investment horizon Ucommune International is expected to generate 5.61 times less return on investment than Apple Hospitality. In addition to that, Ucommune International is 1.08 times more volatile than Apple Hospitality REIT. It trades about 0.03 of its total potential returns per unit of risk. Apple Hospitality REIT is currently generating about 0.17 per unit of volatility. If you would invest 1,517 in Apple Hospitality REIT on August 31, 2024 and sell it today you would earn a total of 103.00 from holding Apple Hospitality REIT or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Apple Hospitality REIT
Performance |
| Timeline |
| Ucommune International |
| Apple Hospitality REIT |
Ucommune International and Apple Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Apple Hospitality
The main advantage of trading using opposite Ucommune International and Apple Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Apple Hospitality 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 Apple Hospitality will offset losses from the drop in Apple Hospitality's long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Avalon GloboCare Corp |
| Apple Hospitality vs. Park Hotels Resorts | Apple Hospitality vs. Diamondrock Hospitality | Apple Hospitality vs. Ryman Hospitality Properties | Apple Hospitality vs. Pebblebrook Hotel Trust |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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