Correlation Between Ucommune International and AMREP

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

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

Diversification Opportunities for Ucommune International and AMREP

-0.48

Correlation Coefficient

Ucommune International  AMREP

Very good diversification

The 3 months correlation between Ucommune and AMREP is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and Ucommune International 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 Ucommune International are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Ucommune International i.e., Ucommune International and AMREP go up and down completely randomly.

Pair Corralation between Ucommune International and AMREP

Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the AMREP. In addition to that, Ucommune International is 2.46 times more volatile than AMREP. It trades about -0.04 of its total potential returns per unit of risk. AMREP is currently generating about 0.08 per unit of volatility. If you would invest  1,196  in AMREP on October 4, 2024 and sell it today you would earn a total of  1,944  from holding AMREP or generate 162.54% return on investment over 90 days.

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

Ucommune International  vs.  AMREP

Ucommune International

Risk-Adjusted Performance

0 of 100

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 uncertain 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.

AMREP

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AMREP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, AMREP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Ucommune International and AMREP

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

The idea behind Ucommune International and AMREP 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.