Correlation Between Ucommune International and American Healthcare

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

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

Diversification Opportunities for Ucommune International and American Healthcare

-0.48

Correlation Coefficient

Ucommune International  American Healthcare

Very good diversification

The 3 months correlation between Ucommune and American is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and American Healthcare REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Healthcare REIT, 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 American Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Healthcare REIT, has no effect on the direction of Ucommune International i.e., Ucommune International and American Healthcare go up and down completely randomly.

Pair Corralation between Ucommune International and American Healthcare

Allowing for the 90-day total investment horizon Ucommune International is expected to generate 2.02 times more return on investment than American Healthcare. However, Ucommune International is 2.02 times more volatile than American Healthcare REIT,. It trades about -0.05 of its potential returns per unit of risk. American Healthcare REIT, is currently generating about -0.15 per unit of risk. If you would invest  122.00  in Ucommune International on September 24, 2024 and sell it today you would lose (4.00) from holding Ucommune International or give up 3.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Ucommune International  vs.  American Healthcare REIT,

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 uncertain performance in the last few months, the Etf's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

American Healthcare REIT,

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in American Healthcare REIT, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical indicators, American Healthcare may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Ucommune International and American Healthcare

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

The idea behind Ucommune International and American Healthcare REIT, 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.