Correlation Between Cheche Group and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both Cheche Group and Fast Retailing 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 Fast Retailing 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 Fast Retailing Co, you can compare the effects of market volatilities on Cheche Group and Fast Retailing 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 Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Fast Retailing.
Diversification Opportunities for Cheche Group and Fast Retailing
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheche and Fast is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Warrant and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing 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 Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of Cheche Group i.e., Cheche Group and Fast Retailing go up and down completely randomly.
Pair Corralation between Cheche Group and Fast Retailing
Assuming the 90 days horizon Cheche Group is expected to generate 10.8 times less return on investment than Fast Retailing. In addition to that, Cheche Group is 1.02 times more volatile than Fast Retailing Co. It trades about 0.01 of its total potential returns per unit of risk. Fast Retailing Co is currently generating about 0.06 per unit of volatility. If you would invest 20,239 in Fast Retailing Co on September 5, 2024 and sell it today you would earn a total of 13,351 from holding Fast Retailing Co or generate 65.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.6% |
| Values | Daily Returns |
Cheche Group Warrant vs. Fast Retailing Co
Performance |
| Timeline |
| Cheche Group Warrant |
| Fast Retailing |
Cheche Group and Fast Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Fast Retailing
The main advantage of trading using opposite Cheche Group and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.| Cheche Group vs. Fast Retailing Co | Cheche Group vs. One Gas | Cheche Group vs. Sea | Cheche Group vs. Titan Machinery |
| Fast Retailing vs. Industria de Diseno | Fast Retailing vs. Aritzia | Fast Retailing vs. Shoe Carnival | Fast Retailing vs. Genesco |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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