Correlation Between Ucommune International and Anywhere Real

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

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

Diversification Opportunities for Ucommune International and Anywhere Real

0.19

Correlation Coefficient

Ucommune International  Anywhere Real

Average diversification

The 3 months correlation between Ucommune and Anywhere is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Anywhere Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anywhere Real Estate 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 Anywhere Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anywhere Real Estate has no effect on the direction of Ucommune International i.e., Ucommune International and Anywhere Real go up and down completely randomly.

Pair Corralation between Ucommune International and Anywhere Real

Allowing for the 90-day total investment horizon Ucommune International is expected to generate 3.13 times less return on investment than Anywhere Real. But when comparing it to its historical volatility, Ucommune International is 1.48 times less risky than Anywhere Real. It trades about 0.07 of its potential returns per unit of risk. Anywhere Real Estate is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  340.00  in Anywhere Real Estate on October 27, 2024 and sell it today you would earn a total of  39.00  from holding Anywhere Real Estate or generate 11.47% return on investment over 90 days.

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

Ucommune International  vs.  Anywhere Real Estate

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 newest stock price mess, may contribute to short-term losses for the institutional investors.

Anywhere Real Estate

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Anywhere Real Estate are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Anywhere Real is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ucommune International and Anywhere Real

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

The idea behind Ucommune International and Anywhere Real Estate 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.