Correlation Between Ucommune International and Global Net
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Global Net 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 Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Global Net Lease, you can compare the effects of market volatilities on Ucommune International and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Global Net.
Diversification Opportunities for Ucommune International and Global Net
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ucommune and Global is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Ucommune International i.e., Ucommune International and Global Net go up and down completely randomly.
Pair Corralation between Ucommune International and Global Net
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Global Net. In addition to that, Ucommune International is 2.59 times more volatile than Global Net Lease. It trades about 0.0 of its total potential returns per unit of risk. Global Net Lease is currently generating about 0.03 per unit of volatility. If you would invest 2,190 in Global Net Lease on November 18, 2024 and sell it today you would earn a total of 11.00 from holding Global Net Lease or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Global Net Lease
Performance |
| Timeline |
| Ucommune International |
| Global Net Lease |
Ucommune International and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Global Net
The main advantage of trading using opposite Ucommune International and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp | Ucommune International vs. Avalon GloboCare Corp |
| Global Net vs. Modiv Inc | Global Net vs. Precinct Properties New | Global Net vs. Global Net Lease | Global Net vs. NexPoint Diversified Real |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |