Correlation Between Ucommune International and Xenia Hotels

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

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

Diversification Opportunities for Ucommune International and Xenia Hotels

-0.26

Correlation Coefficient

Ucommune International  Xenia Hotels

Very good diversification

The 3 months correlation between Ucommune and Xenia is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Xenia Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenia Hotels Resorts 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 Xenia Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenia Hotels Resorts has no effect on the direction of Ucommune International i.e., Ucommune International and Xenia Hotels go up and down completely randomly.

Pair Corralation between Ucommune International and Xenia Hotels

Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Xenia Hotels. In addition to that, Ucommune International is 1.79 times more volatile than Xenia Hotels Resorts. It trades about -0.04 of its total potential returns per unit of risk. Xenia Hotels Resorts is currently generating about 0.04 per unit of volatility. If you would invest  1,447  in Xenia Hotels Resorts on October 24, 2024 and sell it today you would earn a total of  43.00  from holding Xenia Hotels Resorts or generate 2.97% 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.  Xenia Hotels Resorts

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 uncertain 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.

Xenia Hotels Resorts

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xenia Hotels Resorts are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical indicators, Xenia Hotels is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ucommune International and Xenia Hotels

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

The idea behind Ucommune International and Xenia Hotels Resorts 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 Stocks Directory module to find actively traded stocks across global markets.