Correlation Between Hello and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Hello 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 Hello and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hello Group and Cheche Group Warrant, you can compare the effects of market volatilities on Hello 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 Hello with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hello and Cheche Group.
Diversification Opportunities for Hello and Cheche Group
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hello and Cheche is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hello Group and Cheche Group Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Warrant and Hello 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 Hello Group 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 Warrant has no effect on the direction of Hello i.e., Hello and Cheche Group go up and down completely randomly.
Pair Corralation between Hello and Cheche Group
Given the investment horizon of 90 days Hello Group is expected to generate 0.23 times more return on investment than Cheche Group. However, Hello Group is 4.3 times less risky than Cheche Group. It trades about 0.11 of its potential returns per unit of risk. Cheche Group Warrant is currently generating about -0.01 per unit of risk. If you would invest 743.00 in Hello Group on November 29, 2024 and sell it today you would earn a total of 41.00 from holding Hello Group or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hello Group vs. Cheche Group Warrant
Performance |
| Timeline |
| Hello Group |
| Cheche Group Warrant |
Hello and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hello and Cheche Group
The main advantage of trading using opposite Hello and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hello 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.| Hello vs. Weibo Corp | Hello vs. Autohome | Hello vs. Tencent Music Entertainment | Hello vs. DouYu International Holdings |
| Cheche Group vs. Coupang LLC | Cheche Group vs. Constellation Brands Class | Cheche Group vs. Fomento Economico Mexicano | Cheche Group vs. Lululemon Athletica |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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