Correlation Between Cheche Group and Lionsgate Studios
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Lionsgate Studios 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 Lionsgate Studios 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 Lionsgate Studios Corp, you can compare the effects of market volatilities on Cheche Group and Lionsgate Studios 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 Lionsgate Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Lionsgate Studios.
Diversification Opportunities for Cheche Group and Lionsgate Studios
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheche and Lionsgate is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Lionsgate Studios Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionsgate Studios 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 Lionsgate Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionsgate Studios Corp has no effect on the direction of Cheche Group i.e., Cheche Group and Lionsgate Studios go up and down completely randomly.
Pair Corralation between Cheche Group and Lionsgate Studios
Considering the 90-day investment horizon Cheche Group Class is expected to generate 1.46 times more return on investment than Lionsgate Studios. However, Cheche Group is 1.46 times more volatile than Lionsgate Studios Corp. It trades about 0.02 of its potential returns per unit of risk. Lionsgate Studios Corp is currently generating about -0.03 per unit of risk. If you would invest 87.00 in Cheche Group Class on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Cheche Group Class or generate 0.0% 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. Lionsgate Studios Corp
Performance |
| Timeline |
| Cheche Group Class |
| Lionsgate Studios Corp |
Cheche Group and Lionsgate Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Lionsgate Studios
The main advantage of trading using opposite Cheche Group and Lionsgate Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Lionsgate Studios 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 Lionsgate Studios will offset losses from the drop in Lionsgate Studios' long position.| Cheche Group vs. Hurco Companies | Cheche Group vs. Western Acquisition Ventures | Cheche Group vs. Suburban Propane Partners | Cheche Group vs. Atmos Energy |
| Lionsgate Studios vs. Harmony Gold Mining | Lionsgate Studios vs. ReTo Eco Solutions | Lionsgate Studios vs. GMS Inc | Lionsgate Studios vs. Cheche Group Class |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |