Correlation Between Ucommune International and Us Real

Can any of the company-specific risk be diversified away by investing in both Ucommune International and Us 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 Us 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 Us Real Estate, you can compare the effects of market volatilities on Ucommune International and Us 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 Us Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Us Real.

Diversification Opportunities for Ucommune International and Us Real

0.0

Correlation Coefficient

Ucommune International  Us Real

Pay attention - limited upside

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

Pair Corralation between Ucommune International and Us Real

If you would invest  114.00  in Ucommune International on December 28, 2024 and sell it today you would lose (1.00) from holding Ucommune International or give up 0.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ucommune International  vs.  Us Real Estate

Ucommune International

Risk-Adjusted Performance

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.

Us Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Us Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Us Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ucommune International and Us Real

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

The idea behind Ucommune International and Us 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.