Correlation Between Cheche Group and STATE
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By analyzing existing cross correlation between Cheche Group Class and STATE STREET P, you can compare the effects of market volatilities on Cheche Group and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and STATE.
Diversification Opportunities for Cheche Group and STATE
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheche and STATE is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Cheche Group i.e., Cheche Group and STATE go up and down completely randomly.
Pair Corralation between Cheche Group and STATE
Considering the 90-day investment horizon Cheche Group Class is expected to generate 3.31 times more return on investment than STATE. However, Cheche Group is 3.31 times more volatile than STATE STREET P. It trades about 0.06 of its potential returns per unit of risk. STATE STREET P is currently generating about 0.08 per unit of risk. If you would invest 86.00 in Cheche Group Class on October 24, 2024 and sell it today you would earn a total of 2.00 from holding Cheche Group Class or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Cheche Group Class vs. STATE STREET P
Performance |
| Timeline |
| Cheche Group Class |
| STATE STREET P |
Cheche Group and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and STATE
The main advantage of trading using opposite Cheche Group and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE's long position.| Cheche Group vs. Albertsons Companies | Cheche Group vs. Tradeweb Markets | Cheche Group vs. Academy Sports Outdoors | Cheche Group vs. BBB Foods |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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