Correlation Between Ucommune International and Simon Property
Can any of the company-specific risk be diversified away by investing in both Ucommune International and Simon Property 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 Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Simon Property Group, you can compare the effects of market volatilities on Ucommune International and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Simon Property.
Diversification Opportunities for Ucommune International and Simon Property
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ucommune and Simon is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Ucommune International i.e., Ucommune International and Simon Property go up and down completely randomly.
Pair Corralation between Ucommune International and Simon Property
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Simon Property. In addition to that, Ucommune International is 3.47 times more volatile than Simon Property Group. It trades about -0.05 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.02 per unit of volatility. If you would invest 5,931 in Simon Property Group on August 27, 2024 and sell it today you would earn a total of 249.00 from holding Simon Property Group or generate 4.2% 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. Simon Property Group
Performance |
| Timeline |
| Ucommune International |
| Simon Property Group |
Ucommune International and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Simon Property
The main advantage of trading using opposite Ucommune International and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property'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 |
| Simon Property vs. Saul Centers | Simon Property vs. Wheeler Real Estate | Simon Property vs. Macerich Company | Simon Property vs. Simon Property Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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