Correlation Between Cheetah Mobile and Upexi
Can any of the company-specific risk be diversified away by investing in both Cheetah Mobile and Upexi 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 Upexi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheetah Mobile and Upexi Inc, you can compare the effects of market volatilities on Cheetah Mobile and Upexi 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 Upexi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Mobile and Upexi.
Diversification Opportunities for Cheetah Mobile and Upexi
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cheetah and Upexi is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Mobile and Upexi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upexi Inc 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 Upexi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upexi Inc has no effect on the direction of Cheetah Mobile i.e., Cheetah Mobile and Upexi go up and down completely randomly.
Pair Corralation between Cheetah Mobile and Upexi
Given the investment horizon of 90 days Cheetah Mobile is expected to generate 1.37 times less return on investment than Upexi. But when comparing it to its historical volatility, Cheetah Mobile is 3.47 times less risky than Upexi. It trades about 0.07 of its potential returns per unit of risk. Upexi Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 720.00 in Upexi Inc on October 25, 2024 and sell it today you would lose (330.00) from holding Upexi Inc or give up 45.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheetah Mobile vs. Upexi Inc
Performance |
| Timeline |
| Cheetah Mobile |
| Upexi Inc |
Cheetah Mobile and Upexi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheetah Mobile and Upexi
The main advantage of trading using opposite Cheetah Mobile and Upexi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Mobile position performs unexpectedly, Upexi 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 Upexi will offset losses from the drop in Upexi's long position.| Cheetah Mobile vs. Tuniu Corp | Cheetah Mobile vs. Yirendai | Cheetah Mobile vs. Xunlei Ltd Adr | Cheetah Mobile vs. Phoenix New Media |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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