Correlation Between Ucommune International and National Storage
Can any of the company-specific risk be diversified away by investing in both Ucommune International and National Storage 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 National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and National Storage Affiliates, you can compare the effects of market volatilities on Ucommune International and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and National Storage.
Diversification Opportunities for Ucommune International and National Storage
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ucommune and National is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of Ucommune International i.e., Ucommune International and National Storage go up and down completely randomly.
Pair Corralation between Ucommune International and National Storage
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the National Storage. In addition to that, Ucommune International is 9.66 times more volatile than National Storage Affiliates. It trades about -0.06 of its total potential returns per unit of risk. National Storage Affiliates is currently generating about -0.1 per unit of volatility. If you would invest 2,276 in National Storage Affiliates on August 28, 2024 and sell it today you would lose (40.00) from holding National Storage Affiliates or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. National Storage Affiliates
Performance |
| Timeline |
| Ucommune International |
| National Storage Aff |
Ucommune International and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and National Storage
The main advantage of trading using opposite Ucommune International and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage'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 |
| National Storage vs. National Storage Affiliates | National Storage vs. Innovative Industrial Properties | National Storage vs. Industrial Logistics Properties | National Storage vs. Public Storage |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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