Correlation Between Ucommune International and SL Green
Can any of the company-specific risk be diversified away by investing in both Ucommune International and SL Green 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 SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and SL Green Realty, you can compare the effects of market volatilities on Ucommune International and SL Green 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 SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and SL Green.
Diversification Opportunities for Ucommune International and SL Green
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ucommune and SLG is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and SL Green Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SL Green Realty 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 SL Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SL Green Realty has no effect on the direction of Ucommune International i.e., Ucommune International and SL Green go up and down completely randomly.
Pair Corralation between Ucommune International and SL Green
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the SL Green. In addition to that, Ucommune International is 1.18 times more volatile than SL Green Realty. It trades about -0.29 of its total potential returns per unit of risk. SL Green Realty is currently generating about -0.07 per unit of volatility. If you would invest 7,610 in SL Green Realty on September 18, 2024 and sell it today you would lose (199.00) from holding SL Green Realty or give up 2.61% 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. SL Green Realty
Performance |
| Timeline |
| Ucommune International |
| SL Green Realty |
Ucommune International and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and SL Green
The main advantage of trading using opposite Ucommune International and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, SL Green 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 SL Green will offset losses from the drop in SL Green's long position.| Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp | Ucommune International vs. Avalon GloboCare Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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