Correlation Between Ucommune International and Fidelity Series

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

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

Diversification Opportunities for Ucommune International and Fidelity Series

-0.5

Correlation Coefficient

Ucommune International  Fidelity Series

Very good diversification

The 3 months correlation between Ucommune and Fidelity is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Fidelity Series Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Real 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 Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Real has no effect on the direction of Ucommune International i.e., Ucommune International and Fidelity Series go up and down completely randomly.

Pair Corralation between Ucommune International and Fidelity Series

Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Fidelity Series. In addition to that, Ucommune International is 21.37 times more volatile than Fidelity Series Real. It trades about -0.03 of its total potential returns per unit of risk. Fidelity Series Real is currently generating about 0.03 per unit of volatility. If you would invest  911.00  in Fidelity Series Real on January 31, 2024 and sell it today you would earn a total of  51.00  from holding Fidelity Series Real or generate 5.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ucommune International  vs.  Fidelity Series Real

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.

Fidelity Series Real

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Series Real are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Fidelity Series is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ucommune International and Fidelity Series

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

The idea behind Ucommune International and Fidelity Series Real 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.