Correlation Between Ucommune International and MDJM
Can any of the company-specific risk be diversified away by investing in both Ucommune International and MDJM 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 MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and MDJM, you can compare the effects of market volatilities on Ucommune International and MDJM 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 MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and MDJM.
Diversification Opportunities for Ucommune International and MDJM
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ucommune and MDJM is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM 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 MDJM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDJM has no effect on the direction of Ucommune International i.e., Ucommune International and MDJM go up and down completely randomly.
Pair Corralation between Ucommune International and MDJM
Allowing for the 90-day total investment horizon Ucommune International is expected to generate 0.91 times more return on investment than MDJM. However, Ucommune International is 1.1 times less risky than MDJM. It trades about -0.02 of its potential returns per unit of risk. MDJM is currently generating about -0.05 per unit of risk. If you would invest 371.00 in Ucommune International on August 24, 2024 and sell it today you would lose (248.00) from holding Ucommune International or give up 66.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. MDJM
Performance |
| Timeline |
| Ucommune International |
| MDJM |
Ucommune International and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and MDJM
The main advantage of trading using opposite Ucommune International and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, MDJM 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 MDJM will offset losses from the drop in MDJM'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 |
| MDJM vs. Fangdd Network Group | MDJM vs. Ucommune International | MDJM vs. Ohmyhome Limited Ordinary | MDJM vs. Southcorp Capital |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |