Correlation Between Ucommune International and EXp World
Can any of the company-specific risk be diversified away by investing in both Ucommune International and EXp World 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 EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and eXp World Holdings, you can compare the effects of market volatilities on Ucommune International and EXp World 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 EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and EXp World.
Diversification Opportunities for Ucommune International and EXp World
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ucommune and EXp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and eXp World Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eXp World Holdings 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 EXp World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eXp World Holdings has no effect on the direction of Ucommune International i.e., Ucommune International and EXp World go up and down completely randomly.
Pair Corralation between Ucommune International and EXp World
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the EXp World. In addition to that, Ucommune International is 1.19 times more volatile than eXp World Holdings. It trades about -0.1 of its total potential returns per unit of risk. eXp World Holdings is currently generating about 0.08 per unit of volatility. If you would invest 1,078 in eXp World Holdings on August 31, 2024 and sell it today you would earn a total of 307.00 from holding eXp World Holdings or generate 28.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. eXp World Holdings
Performance |
| Timeline |
| Ucommune International |
| eXp World Holdings |
Ucommune International and EXp World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and EXp World
The main advantage of trading using opposite Ucommune International and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, EXp World 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 EXp World will offset losses from the drop in EXp World'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 |
| EXp World vs. Re Max Holding | EXp World vs. Fathom Holdings | EXp World vs. Anywhere Real Estate | EXp World vs. RMR Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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