Correlation Between Ucommune International and Prologis
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Prologis 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 Prologis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Prologis, you can compare the effects of market volatilities on Ucommune International and Prologis 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 Prologis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Prologis.
Diversification Opportunities for Ucommune International and Prologis
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ucommune and Prologis is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Prologis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prologis 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 Prologis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prologis has no effect on the direction of Ucommune International i.e., Ucommune International and Prologis go up and down completely randomly.
Pair Corralation between Ucommune International and Prologis
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Prologis. In addition to that, Ucommune International is 5.03 times more volatile than Prologis. It trades about -0.03 of its total potential returns per unit of risk. Prologis is currently generating about 0.0 per unit of volatility. If you would invest 12,051 in Prologis on August 31, 2024 and sell it today you would lose (271.00) from holding Prologis or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Prologis
Performance |
| Timeline |
| Ucommune International |
| Prologis |
Ucommune International and Prologis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Prologis
The main advantage of trading using opposite Ucommune International and Prologis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Prologis 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 Prologis will offset losses from the drop in Prologis' long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Avalon GloboCare Corp |
| Prologis vs. Extra Space Storage | Prologis vs. CubeSmart | Prologis vs. STAG Industrial | Prologis vs. Innovative Industrial Properties |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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