Correlation Between FLJ and Ucommune International

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Can any of the company-specific risk be diversified away by investing in both FLJ 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 FLJ and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLJ Group and Ucommune International, you can compare the effects of market volatilities on FLJ 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 FLJ with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLJ and Ucommune International.

Diversification Opportunities for FLJ and Ucommune International

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between FLJ and Ucommune is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding FLJ Group and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and FLJ 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 FLJ Group 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 FLJ i.e., FLJ and Ucommune International go up and down completely randomly.

Pair Corralation between FLJ and Ucommune International

If you would invest  119.00  in FLJ Group on September 2, 2024 and sell it today you would earn a total of  0.00  from holding FLJ Group or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy1.56%
ValuesDaily Returns

FLJ Group  vs.  Ucommune International

 Performance 
       Timeline  
FLJ Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days FLJ Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady essential indicators, FLJ is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.
Ucommune International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ucommune International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Etf's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

FLJ and Ucommune International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FLJ and Ucommune International

The main advantage of trading using opposite FLJ and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLJ 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.
The idea behind FLJ Group and Ucommune International 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.
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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