Correlation Between Xinyuan Real and Ucommune International
Can any of the company-specific risk be diversified away by investing in both Xinyuan Real 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 Xinyuan Real and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinyuan Real Estate and Ucommune International, you can compare the effects of market volatilities on Xinyuan Real 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 Xinyuan Real with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyuan Real and Ucommune International.
Diversification Opportunities for Xinyuan Real and Ucommune International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinyuan and Ucommune is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xinyuan Real Estate and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and Xinyuan Real 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 Xinyuan Real Estate 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 Xinyuan Real i.e., Xinyuan Real and Ucommune International go up and down completely randomly.
Pair Corralation between Xinyuan Real and Ucommune International
Considering the 90-day investment horizon Xinyuan Real Estate is expected to under-perform the Ucommune International. In addition to that, Xinyuan Real is 1.26 times more volatile than Ucommune International. It trades about -0.25 of its total potential returns per unit of risk. Ucommune International is currently generating about -0.1 per unit of volatility. If you would invest 129.00 in Ucommune International on August 27, 2024 and sell it today you would lose (6.00) from holding Ucommune International or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinyuan Real Estate vs. Ucommune International
Performance |
| Timeline |
| Xinyuan Real Estate |
| Ucommune International |
Xinyuan Real and Ucommune International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyuan Real and Ucommune International
The main advantage of trading using opposite Xinyuan Real and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyuan Real 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.| Xinyuan Real vs. AMREP | Xinyuan Real vs. Alset Ehome International | Xinyuan Real vs. Landsea Homes Corp | Xinyuan Real vs. Bayport International Holdings |
| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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