Correlation Between XChange TECINC and Ucommune International
Can any of the company-specific risk be diversified away by investing in both XChange TECINC and Ucommune International 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 XChange TECINC and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XChange TECINC and Ucommune International, you can compare the effects of market volatilities on XChange TECINC and Ucommune International 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 XChange TECINC with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of XChange TECINC and Ucommune International.
Diversification Opportunities for XChange TECINC and Ucommune International
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XChange and Ucommune is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding XChange TECINC and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and XChange TECINC 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 XChange TECINC are associated (or correlated) with Ucommune International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ucommune International has no effect on the direction of XChange TECINC i.e., XChange TECINC and Ucommune International go up and down completely randomly.
Pair Corralation between XChange TECINC and Ucommune International
Considering the 90-day investment horizon XChange TECINC is expected to under-perform the Ucommune International. In addition to that, XChange TECINC is 3.73 times more volatile than Ucommune International. It trades about -0.02 of its total potential returns per unit of risk. Ucommune International is currently generating about 0.0 per unit of volatility. If you would invest 116.00 in Ucommune International on November 18, 2024 and sell it today you would lose (1.00) from holding Ucommune International or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XChange TECINC vs. Ucommune International
Performance |
| Timeline |
| XChange TECINC |
| Ucommune International |
XChange TECINC and Ucommune International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XChange TECINC and Ucommune International
The main advantage of trading using opposite XChange TECINC and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XChange TECINC position performs unexpectedly, Ucommune International 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 Ucommune International will offset losses from the drop in Ucommune International's long position.| XChange TECINC vs. Kossan Rubber Industries | XChange TECINC vs. RBC Bearings Incorporated | XChange TECINC vs. Parker Hannifin | XChange TECINC vs. Valmont Industries |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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