Correlation Between Cheche Group and Hanover Foods
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Hanover Foods 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 Hanover Foods 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 Hanover Foods, you can compare the effects of market volatilities on Cheche Group and Hanover Foods 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 Hanover Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Hanover Foods.
Diversification Opportunities for Cheche Group and Hanover Foods
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheche and Hanover is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Hanover Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Foods 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 Hanover Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanover Foods has no effect on the direction of Cheche Group i.e., Cheche Group and Hanover Foods go up and down completely randomly.
Pair Corralation between Cheche Group and Hanover Foods
If you would invest 5,844 in Hanover Foods on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Hanover Foods or generate 0.0% 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. Hanover Foods
Performance |
| Timeline |
| Cheche Group Class |
| Hanover Foods |
Cheche Group and Hanover Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Hanover Foods
The main advantage of trading using opposite Cheche Group and Hanover Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Hanover Foods 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 Hanover Foods will offset losses from the drop in Hanover Foods' long position.| Cheche Group vs. Here Media | Cheche Group vs. MGIC Investment Corp | Cheche Group vs. East West Bancorp | Cheche Group vs. Apartment Investment and |
| Hanover Foods vs. BRF SA ADR | Hanover Foods vs. Darling Ingredients | Hanover Foods vs. SunOpta | Hanover Foods vs. Bellring Brands LLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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