Correlation Between DouYu International and Cheche Group
Can any of the company-specific risk be diversified away by investing in both DouYu International and Cheche Group 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 DouYu International and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DouYu International Holdings and Cheche Group Class, you can compare the effects of market volatilities on DouYu International and Cheche Group 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 DouYu International with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Cheche Group.
Diversification Opportunities for DouYu International and Cheche Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DouYu and Cheche is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Cheche Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Class and DouYu International 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 DouYu International Holdings are associated (or correlated) with Cheche Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheche Group Class has no effect on the direction of DouYu International i.e., DouYu International and Cheche Group go up and down completely randomly.
Pair Corralation between DouYu International and Cheche Group
Given the investment horizon of 90 days DouYu International is expected to generate 1.37 times less return on investment than Cheche Group. In addition to that, DouYu International is 1.08 times more volatile than Cheche Group Class. It trades about 0.08 of its total potential returns per unit of risk. Cheche Group Class is currently generating about 0.12 per unit of volatility. If you would invest 78.00 in Cheche Group Class on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Cheche Group Class or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DouYu International Holdings vs. Cheche Group Class
Performance |
| Timeline |
| DouYu International |
| Cheche Group Class |
DouYu International and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DouYu International and Cheche Group
The main advantage of trading using opposite DouYu International and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Cheche Group 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 Cheche Group will offset losses from the drop in Cheche Group's long position.| DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
| Cheche Group vs. ServiceNow | Cheche Group vs. Old Dominion Freight | Cheche Group vs. Procter Gamble | Cheche Group vs. Eastman Kodak Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |