Correlation Between Cheche Group and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Cheche Group and HF Sinclair 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 HF Sinclair 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 HF Sinclair Corp, you can compare the effects of market volatilities on Cheche Group and HF Sinclair 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 HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and HF Sinclair.
Diversification Opportunities for Cheche Group and HF Sinclair
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheche and DINO is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair Corp 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 HF Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Sinclair Corp has no effect on the direction of Cheche Group i.e., Cheche Group and HF Sinclair go up and down completely randomly.
Pair Corralation between Cheche Group and HF Sinclair
Considering the 90-day investment horizon Cheche Group Class is expected to generate 2.33 times more return on investment than HF Sinclair. However, Cheche Group is 2.33 times more volatile than HF Sinclair Corp. It trades about 0.2 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.02 per unit of risk. If you would invest 93.00 in Cheche Group Class on November 27, 2024 and sell it today you would earn a total of 22.00 from holding Cheche Group Class or generate 23.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cheche Group Class vs. HF Sinclair Corp
Performance |
Timeline |
Cheche Group Class |
HF Sinclair Corp |
Cheche Group and HF Sinclair Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cheche Group and HF Sinclair
The main advantage of trading using opposite Cheche Group and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, HF Sinclair 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 HF Sinclair will offset losses from the drop in HF Sinclair's long position.Cheche Group vs. Freedom Holding Corp | ||
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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