Correlation Between Ucommune International and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Opendoor Technologies 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 Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Opendoor Technologies, you can compare the effects of market volatilities on Ucommune International and Opendoor Technologies 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 Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Opendoor Technologies.
Diversification Opportunities for Ucommune International and Opendoor Technologies
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ucommune and Opendoor is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies 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 Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of Ucommune International i.e., Ucommune International and Opendoor Technologies go up and down completely randomly.
Pair Corralation between Ucommune International and Opendoor Technologies
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Opendoor Technologies. But the etf apears to be less risky and, when comparing its historical volatility, Ucommune International is 2.86 times less risky than Opendoor Technologies. The etf trades about -0.12 of its potential returns per unit of risk. The Opendoor Technologies is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Opendoor Technologies on August 28, 2024 and sell it today you would earn a total of 41.00 from holding Opendoor Technologies or generate 21.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Opendoor Technologies
Performance |
| Timeline |
| Ucommune International |
| Opendoor Technologies |
Ucommune International and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Opendoor Technologies
The main advantage of trading using opposite Ucommune International and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp |
| Opendoor Technologies vs. eXp World Holdings | Opendoor Technologies vs. Offerpad Solutions | Opendoor Technologies vs. Re Max Holding | Opendoor Technologies vs. Anywhere Real Estate |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |