Correlation Between Ucommune International and Creative Media
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Creative Media 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 Creative Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Creative Media Community, you can compare the effects of market volatilities on Ucommune International and Creative Media 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 Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Creative Media.
Diversification Opportunities for Ucommune International and Creative Media
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ucommune and Creative is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community 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 Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of Ucommune International i.e., Ucommune International and Creative Media go up and down completely randomly.
Pair Corralation between Ucommune International and Creative Media
Allowing for the 90-day total investment horizon Ucommune International is expected to generate 1.62 times more return on investment than Creative Media. However, Ucommune International is 1.62 times more volatile than Creative Media Community. It trades about -0.04 of its potential returns per unit of risk. Creative Media Community is currently generating about -0.1 per unit of risk. If you would invest 1,920 in Ucommune International on August 30, 2024 and sell it today you would lose (1,796) from holding Ucommune International or give up 93.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ucommune International vs. Creative Media Community
Performance |
| Timeline |
| Ucommune International |
| Creative Media Community |
Ucommune International and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Creative Media
The main advantage of trading using opposite Ucommune International and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Creative Media 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 Creative Media will offset losses from the drop in Creative Media'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 |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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