Correlation Between Ucommune International and Wheeler Real

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

Diversification Opportunities for Ucommune International and Wheeler Real

-0.74

Correlation Coefficient

Ucommune International  Wheeler Real

Pay attention - limited upside

The 3 months correlation between Ucommune and Wheeler is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler 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 Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Ucommune International i.e., Ucommune International and Wheeler Real go up and down completely randomly.

Pair Corralation between Ucommune International and Wheeler Real

Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Wheeler Real. But the etf apears to be less risky and, when comparing its historical volatility, Ucommune International is 1.09 times less risky than Wheeler Real. The etf trades about -0.04 of its potential returns per unit of risk. The Wheeler Real Estate is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  118.00  in Wheeler Real Estate on September 12, 2024 and sell it today you would earn a total of  182.00  from holding Wheeler Real Estate or generate 154.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Ucommune International  vs.  Wheeler Real Estate

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 weak 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.

Wheeler Real Estate

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wheeler Real Estate are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Wheeler Real reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ucommune International and Wheeler Real

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

The idea behind Ucommune International and Wheeler 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..