Correlation Between Ucommune International and Mongolia Growth
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Mongolia Growth 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 Mongolia Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Mongolia Growth Group, you can compare the effects of market volatilities on Ucommune International and Mongolia Growth 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 Mongolia Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Mongolia Growth.
Diversification Opportunities for Ucommune International and Mongolia Growth
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ucommune and Mongolia is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Mongolia Growth Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mongolia Growth Group 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 Mongolia Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mongolia Growth Group has no effect on the direction of Ucommune International i.e., Ucommune International and Mongolia Growth go up and down completely randomly.
Pair Corralation between Ucommune International and Mongolia Growth
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Mongolia Growth. In addition to that, Ucommune International is 2.83 times more volatile than Mongolia Growth Group. It trades about -0.03 of its total potential returns per unit of risk. Mongolia Growth Group is currently generating about 0.02 per unit of volatility. If you would invest 89.00 in Mongolia Growth Group on August 30, 2024 and sell it today you would earn a total of 8.00 from holding Mongolia Growth Group or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Mongolia Growth Group
Performance |
| Timeline |
| Ucommune International |
| Mongolia Growth Group |
Ucommune International and Mongolia Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Mongolia Growth
The main advantage of trading using opposite Ucommune International and Mongolia Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Mongolia Growth 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 Mongolia Growth will offset losses from the drop in Mongolia Growth's long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Avalon GloboCare Corp |
| Mongolia Growth vs. Boston Properties | Mongolia Growth vs. Kilroy Realty Corp | Mongolia Growth vs. SL Green Realty | Mongolia Growth vs. Vornado Realty Trust |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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