Correlation Between U Power and RadNet
Can any of the company-specific risk be diversified away by investing in both U Power and RadNet 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 U Power and RadNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Power Limited and RadNet Inc, you can compare the effects of market volatilities on U Power and RadNet 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 U Power with a short position of RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and RadNet.
Diversification Opportunities for U Power and RadNet
Very good diversification
The 3 months correlation between UCAR and RadNet is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc and U Power 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 U Power Limited are associated (or correlated) with RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of U Power i.e., U Power and RadNet go up and down completely randomly.
Pair Corralation between U Power and RadNet
Given the investment horizon of 90 days U Power Limited is expected to generate 3.21 times more return on investment than RadNet. However, U Power is 3.21 times more volatile than RadNet Inc. It trades about -0.05 of its potential returns per unit of risk. RadNet Inc is currently generating about -0.24 per unit of risk. If you would invest 720.00 in U Power Limited on October 11, 2024 and sell it today you would lose (60.00) from holding U Power Limited or give up 8.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
U Power Limited vs. RadNet Inc
Performance |
Timeline |
U Power Limited |
RadNet Inc |
U Power and RadNet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with U Power and RadNet
The main advantage of trading using opposite U Power and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, RadNet 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 RadNet will offset losses from the drop in RadNet's long position.U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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