Correlation Between Cheche Group and Asset Entities
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Asset Entities 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 Asset Entities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheche Group Warrant and Asset Entities Class, you can compare the effects of market volatilities on Cheche Group and Asset Entities 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 Asset Entities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Asset Entities.
Diversification Opportunities for Cheche Group and Asset Entities
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cheche and Asset is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Warrant and Asset Entities Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asset Entities Class 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 Warrant are associated (or correlated) with Asset Entities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asset Entities Class has no effect on the direction of Cheche Group i.e., Cheche Group and Asset Entities go up and down completely randomly.
Pair Corralation between Cheche Group and Asset Entities
Assuming the 90 days horizon Cheche Group Warrant is expected to generate 1.13 times more return on investment than Asset Entities. However, Cheche Group is 1.13 times more volatile than Asset Entities Class. It trades about 0.03 of its potential returns per unit of risk. Asset Entities Class is currently generating about -0.13 per unit of risk. If you would invest 2.10 in Cheche Group Warrant on September 12, 2024 and sell it today you would lose (0.30) from holding Cheche Group Warrant or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Warrant vs. Asset Entities Class
Performance |
| Timeline |
| Cheche Group Warrant |
| Asset Entities Class |
Cheche Group and Asset Entities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Asset Entities
The main advantage of trading using opposite Cheche Group and Asset Entities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Asset Entities 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 Asset Entities will offset losses from the drop in Asset Entities' long position.| Cheche Group vs. CarsalesCom Ltd ADR | Cheche Group vs. Verra Mobility Corp | Cheche Group vs. Li Auto | Cheche Group vs. Hafnia Limited |
| Asset Entities vs. Locafy | Asset Entities vs. Rail Vision Ltd | Asset Entities vs. Heartbeam Warrant | Asset Entities vs. Iveda Solutions Warrant |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |