Correlation Between Didi Global and Treasure Global
Can any of the company-specific risk be diversified away by investing in both Didi Global and Treasure Global 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 Didi Global and Treasure Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Didi Global ADR and Treasure Global, you can compare the effects of market volatilities on Didi Global and Treasure Global 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 Didi Global with a short position of Treasure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Didi Global and Treasure Global.
Diversification Opportunities for Didi Global and Treasure Global
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Didi and Treasure is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Didi Global ADR and Treasure Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasure Global and Didi Global 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 Didi Global ADR are associated (or correlated) with Treasure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasure Global has no effect on the direction of Didi Global i.e., Didi Global and Treasure Global go up and down completely randomly.
Pair Corralation between Didi Global and Treasure Global
If you would invest 435.00 in Didi Global ADR on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Didi Global ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Didi Global ADR vs. Treasure Global
Performance |
| Timeline |
| Didi Global ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Treasure Global |
Didi Global and Treasure Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Didi Global and Treasure Global
The main advantage of trading using opposite Didi Global and Treasure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Didi Global position performs unexpectedly, Treasure Global 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 Treasure Global will offset losses from the drop in Treasure Global's long position.| Didi Global vs. LYFT Inc | Didi Global vs. Unity Software | Didi Global vs. Uber Technologies | Didi Global vs. Digital Turbine |
| Treasure Global vs. Shotspotter | Treasure Global vs. Enfusion | Treasure Global vs. Cleartronic | Treasure Global vs. Lytus Technologies 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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