Correlation Between Cheche Group and Elicio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Elicio Therapeutics 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 Elicio Therapeutics 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 Elicio Therapeutics, you can compare the effects of market volatilities on Cheche Group and Elicio Therapeutics 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 Elicio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Elicio Therapeutics.
Diversification Opportunities for Cheche Group and Elicio Therapeutics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheche and Elicio is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Elicio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicio Therapeutics 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 Elicio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicio Therapeutics has no effect on the direction of Cheche Group i.e., Cheche Group and Elicio Therapeutics go up and down completely randomly.
Pair Corralation between Cheche Group and Elicio Therapeutics
Considering the 90-day investment horizon Cheche Group Class is expected to generate 3.81 times more return on investment than Elicio Therapeutics. However, Cheche Group is 3.81 times more volatile than Elicio Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Elicio Therapeutics is currently generating about 0.03 per unit of risk. If you would invest 1,036 in Cheche Group Class on October 9, 2024 and sell it today you would lose (941.00) from holding Cheche Group Class or give up 90.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.52% |
| Values | Daily Returns |
Cheche Group Class vs. Elicio Therapeutics
Performance |
| Timeline |
| Cheche Group Class |
| Elicio Therapeutics |
Cheche Group and Elicio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Elicio Therapeutics
The main advantage of trading using opposite Cheche Group and Elicio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Elicio Therapeutics 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 Elicio Therapeutics will offset losses from the drop in Elicio Therapeutics' long position.| Cheche Group vs. Xunlei Ltd Adr | Cheche Group vs. CarsalesCom Ltd ADR | Cheche Group vs. Deluxe | Cheche Group vs. Ainsworth Game Technology |
| Elicio Therapeutics vs. Viemed Healthcare | Elicio Therapeutics vs. Mediag3 | Elicio Therapeutics vs. Tandem Diabetes Care | Elicio Therapeutics vs. The Joint Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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