Correlation Between Ucommune International and DigitalBridge
Can any of the company-specific risk be diversified away by investing in both Ucommune International and DigitalBridge 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 DigitalBridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and DigitalBridge Group, you can compare the effects of market volatilities on Ucommune International and DigitalBridge 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 DigitalBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and DigitalBridge.
Diversification Opportunities for Ucommune International and DigitalBridge
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ucommune and DigitalBridge is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and DigitalBridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigitalBridge Group 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 DigitalBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigitalBridge Group has no effect on the direction of Ucommune International i.e., Ucommune International and DigitalBridge go up and down completely randomly.
Pair Corralation between Ucommune International and DigitalBridge
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the DigitalBridge. In addition to that, Ucommune International is 2.38 times more volatile than DigitalBridge Group. It trades about -0.13 of its total potential returns per unit of risk. DigitalBridge Group is currently generating about -0.22 per unit of volatility. If you would invest 2,508 in DigitalBridge Group on August 29, 2024 and sell it today you would lose (104.00) from holding DigitalBridge Group or give up 4.15% 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. DigitalBridge Group
Performance |
| Timeline |
| Ucommune International |
| DigitalBridge Group |
Ucommune International and DigitalBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and DigitalBridge
The main advantage of trading using opposite Ucommune International and DigitalBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, DigitalBridge 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 DigitalBridge will offset losses from the drop in DigitalBridge'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 |
| DigitalBridge vs. ACRES Commercial Realty | DigitalBridge vs. Chimera Investment | DigitalBridge vs. Global Net Lease |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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