Correlation Between Cheche Group and Pinterest
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Pinterest 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 Pinterest 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 Pinterest, you can compare the effects of market volatilities on Cheche Group and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Pinterest.
Diversification Opportunities for Cheche Group and Pinterest
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheche and Pinterest is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Cheche Group i.e., Cheche Group and Pinterest go up and down completely randomly.
Pair Corralation between Cheche Group and Pinterest
Considering the 90-day investment horizon Cheche Group Class is expected to under-perform the Pinterest. In addition to that, Cheche Group is 2.23 times more volatile than Pinterest. It trades about -0.06 of its total potential returns per unit of risk. Pinterest is currently generating about 0.0 per unit of volatility. If you would invest 3,258 in Pinterest on October 12, 2024 and sell it today you would lose (171.00) from holding Pinterest or give up 5.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Class vs. Pinterest
Performance |
| Timeline |
| Cheche Group Class |
Cheche Group and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Pinterest
The main advantage of trading using opposite Cheche Group and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| Cheche Group vs. Alignment Healthcare LLC | Cheche Group vs. Emerson Electric | Cheche Group vs. Western Acquisition Ventures | Cheche Group vs. Highway Holdings Limited |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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