Correlation Between Noble Plc and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Noble Plc 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 Noble Plc and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble plc and Cheche Group Class, you can compare the effects of market volatilities on Noble Plc 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 Noble Plc with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Plc and Cheche Group.
Diversification Opportunities for Noble Plc and Cheche Group
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Noble and Cheche is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Noble plc 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 Noble Plc 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 Noble plc 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 Noble Plc i.e., Noble Plc and Cheche Group go up and down completely randomly.
Pair Corralation between Noble Plc and Cheche Group
Allowing for the 90-day total investment horizon Noble plc is expected to under-perform the Cheche Group. But the stock apears to be less risky and, when comparing its historical volatility, Noble plc is 1.15 times less risky than Cheche Group. The stock trades about -0.07 of its potential returns per unit of risk. The Cheche Group Class is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 88.00 in Cheche Group Class on November 9, 2024 and sell it today you would lose (2.00) from holding Cheche Group Class or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Noble plc vs. Cheche Group Class
Performance |
| Timeline |
| Noble plc |
| Cheche Group Class |
Noble Plc and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Plc and Cheche Group
The main advantage of trading using opposite Noble Plc and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Plc 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.| Noble Plc vs. Seadrill Limited | Noble Plc vs. Borr Drilling | Noble Plc vs. Patterson UTI Energy | Noble Plc vs. Transocean |
| Cheche Group vs. NETGEAR | Cheche Group vs. Fevertree Drinks Plc | Cheche Group vs. China Resources Beer | Cheche Group vs. Westrock Coffee |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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