Correlation Between Ucommune International and New Concept

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

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

Diversification Opportunities for Ucommune International and New Concept

-0.04

Correlation Coefficient

Ucommune International  New Concept

Good diversification

The 3 months correlation between Ucommune and New is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and New Concept Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Concept Energy 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 New Concept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Concept Energy has no effect on the direction of Ucommune International i.e., Ucommune International and New Concept go up and down completely randomly.

Pair Corralation between Ucommune International and New Concept

Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the New Concept. In addition to that, Ucommune International is 1.85 times more volatile than New Concept Energy. It trades about -0.04 of its total potential returns per unit of risk. New Concept Energy is currently generating about 0.02 per unit of volatility. If you would invest  112.00  in New Concept Energy on September 13, 2024 and sell it today you would earn a total of  5.65  from holding New Concept Energy or generate 5.04% return on investment over 90 days.

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

Ucommune International  vs.  New Concept Energy

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 weak performance in the last few months, the Etf's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

New Concept Energy

Risk-Adjusted Performance

0 of 100

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 relatively invariable fundamental drivers, New Concept is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ucommune International and New Concept

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

The idea behind Ucommune International and New Concept Energy 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 Global Correlations module to find global opportunities by holding instruments from different markets.