Correlation Between Cheche Group and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Intelligent Bio 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 Intelligent Bio 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 Intelligent Bio Solutions, you can compare the effects of market volatilities on Cheche Group and Intelligent Bio 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 Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Intelligent Bio.
Diversification Opportunities for Cheche Group and Intelligent Bio
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cheche and Intelligent is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Cheche Group i.e., Cheche Group and Intelligent Bio go up and down completely randomly.
Pair Corralation between Cheche Group and Intelligent Bio
Considering the 90-day investment horizon Cheche Group Class is expected to under-perform the Intelligent Bio. But the stock apears to be less risky and, when comparing its historical volatility, Cheche Group Class is 1.88 times less risky than Intelligent Bio. The stock trades about -0.21 of its potential returns per unit of risk. The Intelligent Bio Solutions is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 146.00 in Intelligent Bio Solutions on November 7, 2024 and sell it today you would earn a total of 24.00 from holding Intelligent Bio Solutions or generate 16.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Class vs. Intelligent Bio Solutions
Performance |
| Timeline |
| Cheche Group Class |
| Intelligent Bio Solutions |
Cheche Group and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Intelligent Bio
The main advantage of trading using opposite Cheche Group and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| Cheche Group vs. Zillow Group Class | Cheche Group vs. Kanzhun Ltd ADR | Cheche Group vs. Outbrain | Cheche Group vs. TuanChe ADR |
| Intelligent Bio vs. Capital Clean Energy | Intelligent Bio vs. ServiceNow | Intelligent Bio vs. Valneva SE ADR | Intelligent Bio vs. Alto Neuroscience, |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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