Correlation Between Cheetah Mobile and PropertyGuru
Can any of the company-specific risk be diversified away by investing in both Cheetah Mobile and PropertyGuru 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 Cheetah Mobile and PropertyGuru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheetah Mobile and PropertyGuru Group, you can compare the effects of market volatilities on Cheetah Mobile and PropertyGuru 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 Cheetah Mobile with a short position of PropertyGuru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Mobile and PropertyGuru.
Diversification Opportunities for Cheetah Mobile and PropertyGuru
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheetah and PropertyGuru is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Mobile and PropertyGuru Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PropertyGuru Group and Cheetah Mobile 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 Cheetah Mobile are associated (or correlated) with PropertyGuru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PropertyGuru Group has no effect on the direction of Cheetah Mobile i.e., Cheetah Mobile and PropertyGuru go up and down completely randomly.
Pair Corralation between Cheetah Mobile and PropertyGuru
Given the investment horizon of 90 days Cheetah Mobile is expected to generate 1.79 times more return on investment than PropertyGuru. However, Cheetah Mobile is 1.79 times more volatile than PropertyGuru Group. It trades about 0.06 of its potential returns per unit of risk. PropertyGuru Group is currently generating about 0.03 per unit of risk. If you would invest 195.00 in Cheetah Mobile on August 27, 2024 and sell it today you would earn a total of 260.00 from holding Cheetah Mobile or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheetah Mobile vs. PropertyGuru Group
Performance |
| Timeline |
| Cheetah Mobile |
| PropertyGuru Group |
Cheetah Mobile and PropertyGuru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheetah Mobile and PropertyGuru
The main advantage of trading using opposite Cheetah Mobile and PropertyGuru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Mobile position performs unexpectedly, PropertyGuru 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 PropertyGuru will offset losses from the drop in PropertyGuru's long position.| Cheetah Mobile vs. Tuniu Corp | Cheetah Mobile vs. Yirendai | Cheetah Mobile vs. Xunlei Ltd Adr | Cheetah Mobile vs. Phoenix New Media |
| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International Holdings |
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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