Correlation Between Ucommune International and Comstock Mining
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Comstock Mining 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 Comstock Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Comstock Mining, you can compare the effects of market volatilities on Ucommune International and Comstock Mining 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 Comstock Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Comstock Mining.
Diversification Opportunities for Ucommune International and Comstock Mining
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ucommune and Comstock is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Comstock Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Mining 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 Comstock Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Mining has no effect on the direction of Ucommune International i.e., Ucommune International and Comstock Mining go up and down completely randomly.
Pair Corralation between Ucommune International and Comstock Mining
Allowing for the 90-day total investment horizon Ucommune International is expected to generate 0.37 times more return on investment than Comstock Mining. However, Ucommune International is 2.72 times less risky than Comstock Mining. It trades about 0.05 of its potential returns per unit of risk. Comstock Mining is currently generating about -0.06 per unit of risk. If you would invest 121.00 in Ucommune International on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Ucommune International or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Comstock Mining
Performance |
| Timeline |
| Ucommune International |
| Comstock Mining |
Ucommune International and Comstock Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Comstock Mining
The main advantage of trading using opposite Ucommune International and Comstock Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Comstock Mining 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 Comstock Mining will offset losses from the drop in Comstock Mining's long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp |
| Comstock Mining vs. Marcus Millichap | Comstock Mining vs. FirstService Corp | Comstock Mining vs. Maui Land Pineapple | Comstock Mining vs. Frp Holdings Ord |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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