Correlation Between Cheer Holding and Thumzup Media
Can any of the company-specific risk be diversified away by investing in both Cheer Holding and Thumzup Media 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 Cheer Holding and Thumzup Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheer Holding and Thumzup Media, you can compare the effects of market volatilities on Cheer Holding and Thumzup Media 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 Cheer Holding with a short position of Thumzup Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheer Holding and Thumzup Media.
Diversification Opportunities for Cheer Holding and Thumzup Media
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheer and Thumzup is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cheer Holding and Thumzup Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thumzup Media and Cheer Holding 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 Cheer Holding are associated (or correlated) with Thumzup Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thumzup Media has no effect on the direction of Cheer Holding i.e., Cheer Holding and Thumzup Media go up and down completely randomly.
Pair Corralation between Cheer Holding and Thumzup Media
Considering the 90-day investment horizon Cheer Holding is expected to generate 0.21 times more return on investment than Thumzup Media. However, Cheer Holding is 4.8 times less risky than Thumzup Media. It trades about -0.39 of its potential returns per unit of risk. Thumzup Media is currently generating about -0.18 per unit of risk. If you would invest 302.00 in Cheer Holding on August 24, 2024 and sell it today you would lose (46.00) from holding Cheer Holding or give up 15.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheer Holding vs. Thumzup Media
Performance |
| Timeline |
| Cheer Holding |
| Thumzup Media |
Cheer Holding and Thumzup Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheer Holding and Thumzup Media
The main advantage of trading using opposite Cheer Holding and Thumzup Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheer Holding position performs unexpectedly, Thumzup Media 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 Thumzup Media will offset losses from the drop in Thumzup Media's long position.| Cheer Holding vs. First Ship Lease | Cheer Holding vs. Tarsus Pharmaceuticals | Cheer Holding vs. Inhibrx | Cheer Holding vs. Abcellera Biologics |
| Thumzup Media vs. WiMi Hologram Cloud | Thumzup Media vs. National CineMedia | Thumzup Media vs. Baosheng Media Group |
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
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |