Correlation Between Cheche Group and Sunlands Technology
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Sunlands Technology 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 Sunlands Technology 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 Sunlands Technology Group, you can compare the effects of market volatilities on Cheche Group and Sunlands Technology 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 Sunlands Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Sunlands Technology.
Diversification Opportunities for Cheche Group and Sunlands Technology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheche and Sunlands is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Sunlands Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlands Technology 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 Sunlands Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunlands Technology has no effect on the direction of Cheche Group i.e., Cheche Group and Sunlands Technology go up and down completely randomly.
Pair Corralation between Cheche Group and Sunlands Technology
Considering the 90-day investment horizon Cheche Group Class is expected to under-perform the Sunlands Technology. In addition to that, Cheche Group is 1.11 times more volatile than Sunlands Technology Group. It trades about -0.07 of its total potential returns per unit of risk. Sunlands Technology Group is currently generating about 0.02 per unit of volatility. If you would invest 864.00 in Sunlands Technology Group on November 9, 2024 and sell it today you would lose (199.00) from holding Sunlands Technology Group or give up 23.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Class vs. Sunlands Technology Group
Performance |
| Timeline |
| Cheche Group Class |
| Sunlands Technology |
Cheche Group and Sunlands Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Sunlands Technology
The main advantage of trading using opposite Cheche Group and Sunlands Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Sunlands Technology 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 Sunlands Technology will offset losses from the drop in Sunlands Technology's long position.| Cheche Group vs. NETGEAR | Cheche Group vs. Fevertree Drinks Plc | Cheche Group vs. China Resources Beer | Cheche Group vs. Westrock Coffee |
| Sunlands Technology vs. Exceed World | Sunlands Technology vs. American Public Education | Sunlands Technology vs. Ihuman Inc | Sunlands Technology vs. Adtalem Global Education |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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