Correlation Between CMCSA and U Power
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By analyzing existing cross correlation between CMCSA 2937 01 NOV 56 and U Power Limited, you can compare the effects of market volatilities on CMCSA and U Power 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 CMCSA with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMCSA and U Power.
Diversification Opportunities for CMCSA and U Power
Excellent diversification
The 3 months correlation between CMCSA and UCAR is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CMCSA 2937 01 NOV 56 and U Power Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Power Limited and CMCSA 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 CMCSA 2937 01 NOV 56 are associated (or correlated) with U Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Power Limited has no effect on the direction of CMCSA i.e., CMCSA and U Power go up and down completely randomly.
Pair Corralation between CMCSA and U Power
Assuming the 90 days trading horizon CMCSA 2937 01 NOV 56 is expected to generate 0.24 times more return on investment than U Power. However, CMCSA 2937 01 NOV 56 is 4.1 times less risky than U Power. It trades about 0.14 of its potential returns per unit of risk. U Power Limited is currently generating about -0.21 per unit of risk. If you would invest 6,174 in CMCSA 2937 01 NOV 56 on September 4, 2024 and sell it today you would earn a total of 186.00 from holding CMCSA 2937 01 NOV 56 or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CMCSA 2937 01 NOV 56 vs. U Power Limited
Performance |
| Timeline |
| CMCSA 2937 01 |
| U Power Limited |
CMCSA and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMCSA and U Power
The main advantage of trading using opposite CMCSA and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMCSA position performs unexpectedly, U Power 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 U Power will offset losses from the drop in U Power's long position.The idea behind CMCSA 2937 01 NOV 56 and U Power Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| U Power vs. Sonic Automotive | U Power vs. Lithia Motors | U Power vs. AutoNation | U Power vs. Penske Automotive 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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