Correlation Between Ucommune International and Haoxi Health

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

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

Diversification Opportunities for Ucommune International and Haoxi Health

0.61

Correlation Coefficient

Ucommune International  Haoxi Health

Poor diversification

The 3 months correlation between Ucommune and Haoxi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Ucommune International i.e., Ucommune International and Haoxi Health go up and down completely randomly.

Pair Corralation between Ucommune International and Haoxi Health

Allowing for the 90-day total investment horizon Ucommune International is expected to generate 0.39 times more return on investment than Haoxi Health. However, Ucommune International is 2.58 times less risky than Haoxi Health. It trades about -0.09 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.18 per unit of risk. If you would invest  149.00  in Ucommune International on August 31, 2024 and sell it today you would lose (25.00) from holding Ucommune International or give up 16.78% of portfolio value over 90 days.

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

Ucommune International  vs.  Haoxi Health Technology

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 quite persistent forward-looking signals, Ucommune International is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Haoxi Health Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haoxi Health Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Ucommune International and Haoxi Health

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

The idea behind Ucommune International and Haoxi Health Technology 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.