Correlation Between Cheche Group and AXIS Capital
Can any of the company-specific risk be diversified away by investing in both Cheche Group and AXIS Capital 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 Cheche Group and AXIS Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheche Group Class and AXIS Capital Holdings, you can compare the effects of market volatilities on Cheche Group and AXIS Capital 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 Cheche Group with a short position of AXIS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and AXIS Capital.
Diversification Opportunities for Cheche Group and AXIS Capital
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheche and AXIS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and AXIS Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXIS Capital Holdings and Cheche Group 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 Cheche Group Class are associated (or correlated) with AXIS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXIS Capital Holdings has no effect on the direction of Cheche Group i.e., Cheche Group and AXIS Capital go up and down completely randomly.
Pair Corralation between Cheche Group and AXIS Capital
Considering the 90-day investment horizon Cheche Group is expected to generate 1.69 times less return on investment than AXIS Capital. In addition to that, Cheche Group is 2.91 times more volatile than AXIS Capital Holdings. It trades about 0.12 of its total potential returns per unit of risk. AXIS Capital Holdings is currently generating about 0.57 per unit of volatility. If you would invest 7,826 in AXIS Capital Holdings on September 1, 2024 and sell it today you would earn a total of 1,478 from holding AXIS Capital Holdings or generate 18.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Class vs. AXIS Capital Holdings
Performance |
| Timeline |
| Cheche Group Class |
| AXIS Capital Holdings |
Cheche Group and AXIS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and AXIS Capital
The main advantage of trading using opposite Cheche Group and AXIS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, AXIS Capital 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 AXIS Capital will offset losses from the drop in AXIS Capital's long position.| Cheche Group vs. ServiceNow | Cheche Group vs. Old Dominion Freight | Cheche Group vs. Procter Gamble | Cheche Group vs. Eastman Kodak Co |
| AXIS Capital vs. Assured Guaranty | AXIS Capital vs. Enact Holdings | AXIS Capital vs. NMI Holdings | AXIS Capital vs. Radian Group |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |