Correlation Between XChange TECINC and Ucommune International
Can any of the company-specific risk be diversified away by investing in both XChange TECINC and Ucommune International 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 XChange TECINC and Ucommune International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XChange TECINC and Ucommune International, you can compare the effects of market volatilities on XChange TECINC and Ucommune International 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 XChange TECINC with a short position of Ucommune International. Check out your portfolio center. Please also check ongoing floating volatility patterns of XChange TECINC and Ucommune International.
Diversification Opportunities for XChange TECINC and Ucommune International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XChange and Ucommune is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding XChange TECINC and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and XChange TECINC 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 XChange TECINC are associated (or correlated) with Ucommune International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ucommune International has no effect on the direction of XChange TECINC i.e., XChange TECINC and Ucommune International go up and down completely randomly.
Pair Corralation between XChange TECINC and Ucommune International
Considering the 90-day investment horizon XChange TECINC is expected to generate 1.23 times less return on investment than Ucommune International. In addition to that, XChange TECINC is 1.18 times more volatile than Ucommune International. It trades about 0.08 of its total potential returns per unit of risk. Ucommune International is currently generating about 0.12 per unit of volatility. If you would invest 87.00 in Ucommune International on September 13, 2025 and sell it today you would earn a total of 12.00 from holding Ucommune International or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XChange TECINC vs. Ucommune International
Performance |
| Timeline |
| XChange TECINC |
| Ucommune International |
XChange TECINC and Ucommune International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XChange TECINC and Ucommune International
The main advantage of trading using opposite XChange TECINC and Ucommune International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XChange TECINC position performs unexpectedly, Ucommune International 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 Ucommune International will offset losses from the drop in Ucommune International's long position.| XChange TECINC vs. Wizz Air Holdings | XChange TECINC vs. Alaska Air Group | XChange TECINC vs. ICL Israel Chemicals | XChange TECINC vs. Westinghouse Air Brake |
| Ucommune International vs. Safe and Green | Ucommune International vs. MDJM | Ucommune International vs. Wheeler Real Estate | Ucommune International vs. Power REIT |
Check out your portfolio center.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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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