Correlation Between U Power and Sel Leb

Can any of the company-specific risk be diversified away by investing in both U Power and Sel Leb 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 U Power and Sel Leb into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between U Power Limited and Sel Leb Marketing, you can compare the effects of market volatilities on U Power and Sel Leb 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 U Power with a short position of Sel Leb. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Sel Leb.

Diversification Opportunities for U Power and Sel Leb

0.0

Correlation Coefficient

U Power  Sel Leb

Pay attention - limited upside

The 3 months correlation between UCAR and Sel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Sel Leb Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sel Leb Marketing and U Power 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 U Power Limited are associated (or correlated) with Sel Leb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sel Leb Marketing has no effect on the direction of U Power i.e., U Power and Sel Leb go up and down completely randomly.

Pair Corralation between U Power and Sel Leb

If you would invest  0.00  in U Power Limited on September 19, 2024 and sell it today you would earn a total of  665.00  from holding U Power Limited or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

U Power Limited  vs.  Sel Leb Marketing

U Power Limited

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in U Power Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, U Power may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sel Leb Marketing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sel Leb Marketing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Sel Leb is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with U Power and Sel Leb

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

The idea behind U Power Limited and Sel Leb Marketing 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.