Correlation Between Cheche Group and Coursera
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Coursera 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 Coursera 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 Coursera, you can compare the effects of market volatilities on Cheche Group and Coursera 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 Coursera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Coursera.
Diversification Opportunities for Cheche Group and Coursera
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheche and Coursera is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Warrant and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera 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 Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of Cheche Group i.e., Cheche Group and Coursera go up and down completely randomly.
Pair Corralation between Cheche Group and Coursera
Assuming the 90 days horizon Cheche Group Warrant is expected to generate 4.03 times more return on investment than Coursera. However, Cheche Group is 4.03 times more volatile than Coursera. It trades about 0.02 of its potential returns per unit of risk. Coursera is currently generating about -0.09 per unit of risk. If you would invest 12.00 in Cheche Group Warrant on August 27, 2024 and sell it today you would lose (10.30) from holding Cheche Group Warrant or give up 85.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Warrant vs. Coursera
Performance |
| Timeline |
| Cheche Group Warrant |
| Coursera |
Cheche Group and Coursera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Coursera
The main advantage of trading using opposite Cheche Group and Coursera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Coursera 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 Coursera will offset losses from the drop in Coursera's long position.| Cheche Group vs. Kura Sushi USA | Cheche Group vs. Aeye Inc | Cheche Group vs. RCI Hospitality Holdings | Cheche Group vs. CAVA Group, |
| Coursera vs. Chegg Inc | Coursera vs. Skillsoft Corp | Coursera vs. Laureate Education | Coursera vs. Udemy Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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