Correlation Between Cheche Group and Nasdaq
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Nasdaq 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 Nasdaq 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 Nasdaq Inc, you can compare the effects of market volatilities on Cheche Group and Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Nasdaq.
Diversification Opportunities for Cheche Group and Nasdaq
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cheche and Nasdaq is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of Cheche Group i.e., Cheche Group and Nasdaq go up and down completely randomly.
Pair Corralation between Cheche Group and Nasdaq
Considering the 90-day investment horizon Cheche Group Class is expected to generate 3.09 times more return on investment than Nasdaq. However, Cheche Group is 3.09 times more volatile than Nasdaq Inc. It trades about 0.06 of its potential returns per unit of risk. Nasdaq Inc is currently generating about 0.12 per unit of risk. If you would invest 79.00 in Cheche Group Class on October 26, 2024 and sell it today you would earn a total of 8.00 from holding Cheche Group Class or generate 10.13% 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. Nasdaq Inc
Performance |
| Timeline |
| Cheche Group Class |
| Nasdaq Inc |
Cheche Group and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Nasdaq
The main advantage of trading using opposite Cheche Group and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Nasdaq 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 Nasdaq will offset losses from the drop in Nasdaq's long position.| Cheche Group vs. Live Ventures | Cheche Group vs. Autohome | Cheche Group vs. Lowes Companies | Cheche Group vs. JetBlue Airways 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 CEOs Directory module to screen CEOs from public companies around the world.
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