Correlation Between Phoenix New and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Phoenix New 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 Phoenix New and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix New Media and Cheche Group Class, you can compare the effects of market volatilities on Phoenix New 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 Phoenix New with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and Cheche Group.
Diversification Opportunities for Phoenix New and Cheche Group
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phoenix and Cheche is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media 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 Phoenix New 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 Phoenix New Media 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 Phoenix New i.e., Phoenix New and Cheche Group go up and down completely randomly.
Pair Corralation between Phoenix New and Cheche Group
Given the investment horizon of 90 days Phoenix New Media is expected to generate 0.99 times more return on investment than Cheche Group. However, Phoenix New Media is 1.01 times less risky than Cheche Group. It trades about 0.01 of its potential returns per unit of risk. Cheche Group Class is currently generating about 0.01 per unit of risk. If you would invest 295.00 in Phoenix New Media on September 1, 2024 and sell it today you would lose (47.00) from holding Phoenix New Media or give up 15.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix New Media vs. Cheche Group Class
Performance |
| Timeline |
| Phoenix New Media |
| Cheche Group Class |
Phoenix New and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and Cheche Group
The main advantage of trading using opposite Phoenix New and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New 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.| Phoenix New vs. Onfolio Holdings | Phoenix New vs. Starbox Group Holdings | Phoenix New vs. MediaAlpha | Phoenix New vs. Metalpha Technology Holding |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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