Correlation Between U Power and 651639AZ9

Can any of the company-specific risk be diversified away by investing in both U Power and 651639AZ9 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 651639AZ9 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 NEM 26 15 JUL 32, you can compare the effects of market volatilities on U Power and 651639AZ9 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 651639AZ9. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and 651639AZ9.

Diversification Opportunities for U Power and 651639AZ9

-0.36

Correlation Coefficient

U Power  651639AZ9

Very good diversification

The 3 months correlation between UCAR and 651639AZ9 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and NEM 26 15 JUL 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEM 26 15 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 651639AZ9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEM 26 15 has no effect on the direction of U Power i.e., U Power and 651639AZ9 go up and down completely randomly.

Pair Corralation between U Power and 651639AZ9

Given the investment horizon of 90 days U Power Limited is expected to generate 145.29 times more return on investment than 651639AZ9. However, U Power is 145.29 times more volatile than NEM 26 15 JUL 32. It trades about 0.06 of its potential returns per unit of risk. NEM 26 15 JUL 32 is currently generating about 0.01 per unit of risk. If you would invest  1,259  in U Power Limited on October 9, 2024 and sell it today you would lose (519.00) from holding U Power Limited or give up 41.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

U Power Limited  vs.  NEM 26 15 JUL 32

U Power Limited

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in U Power Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, U Power reported solid returns over the last few months and may actually be approaching a breakup point.

NEM 26 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NEM 26 15 JUL 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NEM 26 15 JUL 32 investors.

Pair Trading with U Power and 651639AZ9

The main advantage of trading using opposite U Power and 651639AZ9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, 651639AZ9 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 651639AZ9 will offset losses from the drop in 651639AZ9's long position.

The idea behind U Power Limited and NEM 26 15 JUL 32 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.