Correlation Between Ucommune International and Re Max

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

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

Diversification Opportunities for Ucommune International and Re Max

-0.03

Correlation Coefficient

Ucommune International  Re Max

Good diversification

The 3 months correlation between Ucommune and RMAX is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Re Max Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Re Max Holding 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 Re Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Re Max Holding has no effect on the direction of Ucommune International i.e., Ucommune International and Re Max go up and down completely randomly.

Pair Corralation between Ucommune International and Re Max

Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Re Max. In addition to that, Ucommune International is 1.17 times more volatile than Re Max Holding. It trades about -0.03 of its total potential returns per unit of risk. Re Max Holding is currently generating about 0.1 per unit of volatility. If you would invest  1,079  in Re Max Holding on September 5, 2024 and sell it today you would earn a total of  235.00  from holding Re Max Holding or generate 21.78% 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.  Re Max Holding

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.

Re Max Holding

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Re Max Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Re Max showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ucommune International and Re Max

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

The idea behind Ucommune International and Re Max Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.