Correlation Between Ucommune International and Frp Holdings
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Frp Holdings 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 Frp Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Frp Holdings Ord, you can compare the effects of market volatilities on Ucommune International and Frp Holdings 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 Frp Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Frp Holdings.
Diversification Opportunities for Ucommune International and Frp Holdings
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ucommune and Frp is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Frp Holdings Ord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frp Holdings Ord 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 Frp Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frp Holdings Ord has no effect on the direction of Ucommune International i.e., Ucommune International and Frp Holdings go up and down completely randomly.
Pair Corralation between Ucommune International and Frp Holdings
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Frp Holdings. In addition to that, Ucommune International is 4.51 times more volatile than Frp Holdings Ord. It trades about -0.04 of its total potential returns per unit of risk. Frp Holdings Ord is currently generating about 0.02 per unit of volatility. If you would invest 2,966 in Frp Holdings Ord on August 24, 2024 and sell it today you would earn a total of 282.00 from holding Frp Holdings Ord or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Frp Holdings Ord
Performance |
| Timeline |
| Ucommune International |
| Frp Holdings Ord |
Ucommune International and Frp Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Frp Holdings
The main advantage of trading using opposite Ucommune International and Frp Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Frp Holdings 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 Frp Holdings will offset losses from the drop in Frp Holdings' 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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