Correlation Between KRAFT and U Power
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By analyzing existing cross correlation between KRAFT HEINZ FOODS and U Power Limited, you can compare the effects of market volatilities on KRAFT 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 KRAFT with a short position of U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRAFT and U Power.
Diversification Opportunities for KRAFT and U Power
Very good diversification
The 3 months correlation between KRAFT and UCAR is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding KRAFT HEINZ FOODS 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 KRAFT 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 KRAFT HEINZ FOODS 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 KRAFT i.e., KRAFT and U Power go up and down completely randomly.
Pair Corralation between KRAFT and U Power
Assuming the 90 days trading horizon KRAFT HEINZ FOODS is expected to under-perform the U Power. But the bond apears to be less risky and, when comparing its historical volatility, KRAFT HEINZ FOODS is 4.1 times less risky than U Power. The bond trades about -0.24 of its potential returns per unit of risk. The U Power Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 679.00 in U Power Limited on August 28, 2024 and sell it today you would lose (31.00) from holding U Power Limited or give up 4.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.35% |
| Values | Daily Returns |
KRAFT HEINZ FOODS vs. U Power Limited
Performance |
| Timeline |
| KRAFT HEINZ FOODS |
| U Power Limited |
KRAFT and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRAFT and U Power
The main advantage of trading using opposite KRAFT and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRAFT 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.| KRAFT vs. U Power Limited | KRAFT vs. Sandstorm Gold Ltd | KRAFT vs. FDG Electric Vehicles | KRAFT vs. NioCorp Developments Ltd |
| U Power vs. Kingsway Financial Services | U Power vs. KAR Auction Services | U Power vs. Cango Inc | U Power vs. Vroom Inc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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