Correlation Between Cheche Group and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Osisko Development 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 Osisko Development 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 Osisko Development Corp, you can compare the effects of market volatilities on Cheche Group and Osisko Development 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 Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Osisko Development.
Diversification Opportunities for Cheche Group and Osisko Development
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheche and Osisko is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Osisko Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Development 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 Osisko Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Development Corp has no effect on the direction of Cheche Group i.e., Cheche Group and Osisko Development go up and down completely randomly.
Pair Corralation between Cheche Group and Osisko Development
Considering the 90-day investment horizon Cheche Group Class is expected to generate 0.24 times more return on investment than Osisko Development. However, Cheche Group Class is 4.19 times less risky than Osisko Development. It trades about 0.19 of its potential returns per unit of risk. Osisko Development Corp is currently generating about -0.18 per unit of risk. If you would invest 77.00 in Cheche Group Class on October 20, 2024 and sell it today you would earn a total of 10.00 from holding Cheche Group Class or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.0% |
| Values | Daily Returns |
Cheche Group Class vs. Osisko Development Corp
Performance |
| Timeline |
| Cheche Group Class |
| Osisko Development Corp |
Cheche Group and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Osisko Development
The main advantage of trading using opposite Cheche Group and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Osisko Development 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 Osisko Development will offset losses from the drop in Osisko Development's long position.| Cheche Group vs. JD Sports Fashion | Cheche Group vs. Playa Hotels Resorts | Cheche Group vs. Alvotech | Cheche Group vs. LG Display Co |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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