Correlation Between Ucommune International and Braemar Hotels
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Braemar Hotels 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 Braemar Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Braemar Hotels Resorts, you can compare the effects of market volatilities on Ucommune International and Braemar Hotels 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 Braemar Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Braemar Hotels.
Diversification Opportunities for Ucommune International and Braemar Hotels
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ucommune and Braemar is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Braemar Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braemar Hotels Resorts 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 Braemar Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braemar Hotels Resorts has no effect on the direction of Ucommune International i.e., Ucommune International and Braemar Hotels go up and down completely randomly.
Pair Corralation between Ucommune International and Braemar Hotels
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Braemar Hotels. In addition to that, Ucommune International is 1.53 times more volatile than Braemar Hotels Resorts. It trades about -0.12 of its total potential returns per unit of risk. Braemar Hotels Resorts is currently generating about -0.06 per unit of volatility. If you would invest 2,140 in Braemar Hotels Resorts on August 27, 2024 and sell it today you would lose (43.00) from holding Braemar Hotels Resorts or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Braemar Hotels Resorts
Performance |
| Timeline |
| Ucommune International |
| Braemar Hotels Resorts |
Ucommune International and Braemar Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Braemar Hotels
The main advantage of trading using opposite Ucommune International and Braemar Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Braemar Hotels 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 Braemar Hotels will offset losses from the drop in Braemar Hotels' long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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