Correlation Between Ucommune International and Medican Enterprises

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

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

Diversification Opportunities for Ucommune International and Medican Enterprises

0.0

Correlation Coefficient

Ucommune International  Medican Enterprises

Pay attention - limited upside

The 3 months correlation between Ucommune and Medican is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Medican Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medican Enterprises 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 Medican Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medican Enterprises has no effect on the direction of Ucommune International i.e., Ucommune International and Medican Enterprises go up and down completely randomly.

Pair Corralation between Ucommune International and Medican Enterprises

If you would invest  0.00  in Medican Enterprises on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Medican Enterprises or generate 0.0% return on investment over 90 days.

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

Ucommune International  vs.  Medican Enterprises

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 inconsistent 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.

Medican Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Medican Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Medican Enterprises is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Ucommune International and Medican Enterprises

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

The idea behind Ucommune International and Medican Enterprises 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.