Correlation Between Cheche Group and Ziff Davis
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Ziff Davis 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 Ziff Davis 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 Ziff Davis, you can compare the effects of market volatilities on Cheche Group and Ziff Davis 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 Ziff Davis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Ziff Davis.
Diversification Opportunities for Cheche Group and Ziff Davis
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cheche and Ziff is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Ziff Davis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziff Davis 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 Ziff Davis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziff Davis has no effect on the direction of Cheche Group i.e., Cheche Group and Ziff Davis go up and down completely randomly.
Pair Corralation between Cheche Group and Ziff Davis
Considering the 90-day investment horizon Cheche Group Class is expected to generate 13.4 times more return on investment than Ziff Davis. However, Cheche Group is 13.4 times more volatile than Ziff Davis. It trades about 0.02 of its potential returns per unit of risk. Ziff Davis is currently generating about -0.04 per unit of risk. If you would invest 1,036 in Cheche Group Class on November 2, 2024 and sell it today you would lose (947.45) from holding Cheche Group Class or give up 91.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.7% |
| Values | Daily Returns |
Cheche Group Class vs. Ziff Davis
Performance |
| Timeline |
| Cheche Group Class |
| Ziff Davis |
Cheche Group and Ziff Davis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Ziff Davis
The main advantage of trading using opposite Cheche Group and Ziff Davis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Ziff Davis 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 Ziff Davis will offset losses from the drop in Ziff Davis' long position.| Cheche Group vs. Zhihu Inc ADR | Cheche Group vs. Edgewell Personal Care | Cheche Group vs. National CineMedia | Cheche Group vs. RBC Bearings Incorporated |
| Ziff Davis vs. Interpublic Group of | Ziff Davis vs. Criteo Sa | Ziff Davis vs. WPP PLC ADR | Ziff Davis vs. Integral Ad Science |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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