Correlation Between Graham Holdings and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Graham Holdings 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 Graham Holdings and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Cheche Group Class, you can compare the effects of market volatilities on Graham Holdings 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 Graham Holdings with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Cheche Group.
Diversification Opportunities for Graham Holdings and Cheche Group
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Graham and Cheche is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co 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 Graham Holdings 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 Graham Holdings Co 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 Graham Holdings i.e., Graham Holdings and Cheche Group go up and down completely randomly.
Pair Corralation between Graham Holdings and Cheche Group
Considering the 90-day investment horizon Graham Holdings is expected to generate 6.95 times less return on investment than Cheche Group. But when comparing it to its historical volatility, Graham Holdings Co is 17.19 times less risky than Cheche Group. It trades about 0.05 of its potential returns per unit of risk. Cheche Group Class is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,041 in Cheche Group Class on October 16, 2024 and sell it today you would lose (951.00) from holding Cheche Group Class or give up 91.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.72% |
| Values | Daily Returns |
Graham Holdings Co vs. Cheche Group Class
Performance |
| Timeline |
| Graham Holdings |
| Cheche Group Class |
Graham Holdings and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Cheche Group
The main advantage of trading using opposite Graham Holdings and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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.| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
| Cheche Group vs. Zillow Group Class | Cheche Group vs. Kanzhun Ltd ADR | Cheche Group vs. Outbrain | Cheche Group vs. TuanChe ADR |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |