Correlation Between New Concept and Ucommune International

Can any of the company-specific risk be diversified away by investing in both New Concept 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 New Concept and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between New Concept Energy and Ucommune International, you can compare the effects of market volatilities on New Concept 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 New Concept with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Concept and Ucommune International.

Diversification Opportunities for New Concept and Ucommune International

0.39

Correlation Coefficient

New Concept  Ucommune International

Weak diversification

The 3 months correlation between New and Ucommune is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding New Concept Energy and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and New Concept 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 New Concept Energy 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 New Concept i.e., New Concept and Ucommune International go up and down completely randomly.

Pair Corralation between New Concept and Ucommune International

Considering the 90-day investment horizon New Concept Energy is expected to under-perform the Ucommune International. In addition to that, New Concept is 1.19 times more volatile than Ucommune International. It trades about -0.12 of its total potential returns per unit of risk. Ucommune International is currently generating about -0.01 per unit of volatility. If you would invest  114.00  in Ucommune International on December 28, 2024 and sell it today you would lose (4.00) from holding Ucommune International or give up 3.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

New Concept Energy  vs.  Ucommune International

New Concept Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days New Concept Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Ucommune International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ucommune International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Ucommune International is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with New Concept and Ucommune International

The main advantage of trading using opposite New Concept and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Concept 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 New Concept Energy 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.