Correlation Between Joint Stock and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Joint Stock 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 Joint Stock and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joint Stock and Cheche Group Class, you can compare the effects of market volatilities on Joint Stock 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 Joint Stock with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and Cheche Group.
Diversification Opportunities for Joint Stock and Cheche Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Joint and Cheche is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock 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 Joint Stock 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 Joint Stock 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 Joint Stock i.e., Joint Stock and Cheche Group go up and down completely randomly.
Pair Corralation between Joint Stock and Cheche Group
Given the investment horizon of 90 days Joint Stock is expected to generate 0.78 times more return on investment than Cheche Group. However, Joint Stock is 1.28 times less risky than Cheche Group. It trades about -0.07 of its potential returns per unit of risk. Cheche Group Class is currently generating about -0.16 per unit of risk. If you would invest 9,769 in Joint Stock on November 6, 2024 and sell it today you would lose (259.00) from holding Joint Stock or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Joint Stock vs. Cheche Group Class
Performance |
| Timeline |
| Joint Stock |
| Cheche Group Class |
Joint Stock and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Stock and Cheche Group
The main advantage of trading using opposite Joint Stock and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock 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.| Joint Stock vs. SentinelOne | Joint Stock vs. BlackBerry | Joint Stock vs. Global Blue Group | Joint Stock vs. Aurora Mobile |
| Cheche Group vs. Sachem Capital Corp | Cheche Group vs. National Storage REIT | Cheche Group vs. Nasdaq Inc | Cheche Group vs. Aldel Financial II |
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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