Correlation Between Cheche Group and Southwestern
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By analyzing existing cross correlation between Cheche Group Class and Southwestern Energy 495, you can compare the effects of market volatilities on Cheche Group and Southwestern 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 Southwestern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Southwestern.
Diversification Opportunities for Cheche Group and Southwestern
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cheche and Southwestern is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Southwestern Energy 495 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwestern Energy 495 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 Southwestern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southwestern Energy 495 has no effect on the direction of Cheche Group i.e., Cheche Group and Southwestern go up and down completely randomly.
Pair Corralation between Cheche Group and Southwestern
Considering the 90-day investment horizon Cheche Group is expected to generate 5.13 times less return on investment than Southwestern. In addition to that, Cheche Group is 2.12 times more volatile than Southwestern Energy 495. It trades about 0.01 of its total potential returns per unit of risk. Southwestern Energy 495 is currently generating about 0.13 per unit of volatility. If you would invest 10,002 in Southwestern Energy 495 on November 3, 2024 and sell it today you would earn a total of 156.00 from holding Southwestern Energy 495 or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Cheche Group Class vs. Southwestern Energy 495
Performance |
| Timeline |
| Cheche Group Class |
| Southwestern Energy 495 |
Cheche Group and Southwestern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Southwestern
The main advantage of trading using opposite Cheche Group and Southwestern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Southwestern 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 Southwestern will offset losses from the drop in Southwestern's long position.| Cheche Group vs. Dave Busters Entertainment | Cheche Group vs. Skillz Platform | Cheche Group vs. National CineMedia | Cheche Group vs. Roblox Corp |
| Southwestern vs. AEP TEX INC | Southwestern vs. US BANK NATIONAL | Southwestern vs. LightPath Technologies | Southwestern vs. Reliance Global Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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