Correlation Between Ucommune International and Medican Enterprises
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Medican Enterprises 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 Medican Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Medican Enterprises, you can compare the effects of market volatilities on Ucommune International and Medican Enterprises 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 Medican Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Medican Enterprises.
Diversification Opportunities for Ucommune International and Medican Enterprises
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ucommune and Medican is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Medican Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medican Enterprises 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 Medican Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medican Enterprises has no effect on the direction of Ucommune International i.e., Ucommune International and Medican Enterprises go up and down completely randomly.
Pair Corralation between Ucommune International and Medican Enterprises
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Medican Enterprises. But the etf apears to be less risky and, when comparing its historical volatility, Ucommune International is 127.96 times less risky than Medican Enterprises. The etf trades about -0.11 of its potential returns per unit of risk. The Medican Enterprises is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Medican Enterprises on November 3, 2024 and sell it today you would earn a total of 0.01 from holding Medican Enterprises or generate 9.223372036854776E16% 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. Medican Enterprises
Performance |
| Timeline |
| Ucommune International |
| Medican Enterprises |
Ucommune International and Medican Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Medican Enterprises
The main advantage of trading using opposite Ucommune International and Medican Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Medican Enterprises 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 Medican Enterprises will offset losses from the drop in Medican Enterprises' 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 |
| Medican Enterprises vs. Metrospaces | Medican Enterprises vs. Jammin Java Corp | Medican Enterprises vs. Re Max Holding | Medican Enterprises vs. Kennedy Wilson Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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