Correlation Between Ucommune International and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Pebblebrook Hotel 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 Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on Ucommune International and Pebblebrook Hotel 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 Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Pebblebrook Hotel.
Diversification Opportunities for Ucommune International and Pebblebrook Hotel
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ucommune and Pebblebrook is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust 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 Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of Ucommune International i.e., Ucommune International and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between Ucommune International and Pebblebrook Hotel
Allowing for the 90-day total investment horizon Ucommune International is expected to generate 2.16 times more return on investment than Pebblebrook Hotel. However, Ucommune International is 2.16 times more volatile than Pebblebrook Hotel Trust. It trades about 0.03 of its potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about -0.19 per unit of risk. If you would invest 123.00 in Ucommune International on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Ucommune International or generate 0.81% 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. Pebblebrook Hotel Trust
Performance |
| Timeline |
| Ucommune International |
| Pebblebrook Hotel Trust |
Ucommune International and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Pebblebrook Hotel
The main advantage of trading using opposite Ucommune International and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Pebblebrook Hotel 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 Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel'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 |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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