Correlation Between Ucommune International and Appreciate Holdings
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Appreciate Holdings 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 Appreciate Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Appreciate Holdings, you can compare the effects of market volatilities on Ucommune International and Appreciate Holdings 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 Appreciate Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Appreciate Holdings.
Diversification Opportunities for Ucommune International and Appreciate Holdings
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ucommune and Appreciate is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Appreciate Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appreciate Holdings 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 Appreciate Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appreciate Holdings has no effect on the direction of Ucommune International i.e., Ucommune International and Appreciate Holdings go up and down completely randomly.
Pair Corralation between Ucommune International and Appreciate Holdings
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Appreciate Holdings. But the etf apears to be less risky and, when comparing its historical volatility, Ucommune International is 3.39 times less risky than Appreciate Holdings. The etf trades about -0.04 of its potential returns per unit of risk. The Appreciate Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Appreciate Holdings on August 24, 2024 and sell it today you would lose (581.00) from holding Appreciate Holdings or give up 95.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
Ucommune International vs. Appreciate Holdings
Performance |
| Timeline |
| Ucommune International |
| Appreciate Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ucommune International and Appreciate Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Appreciate Holdings
The main advantage of trading using opposite Ucommune International and Appreciate Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Appreciate Holdings 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 Appreciate Holdings will offset losses from the drop in Appreciate Holdings' long position.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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