Correlation Between Onfolio Holdings and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Onfolio 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 Onfolio 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 Onfolio Holdings and Cheche Group Warrant, you can compare the effects of market volatilities on Onfolio 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 Onfolio Holdings with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onfolio Holdings and Cheche Group.
Diversification Opportunities for Onfolio Holdings and Cheche Group
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onfolio and Cheche is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Onfolio Holdings 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 Onfolio 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 Onfolio Holdings 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 Onfolio Holdings i.e., Onfolio Holdings and Cheche Group go up and down completely randomly.
Pair Corralation between Onfolio Holdings and Cheche Group
Given the investment horizon of 90 days Onfolio Holdings is expected to generate 0.42 times more return on investment than Cheche Group. However, Onfolio Holdings is 2.39 times less risky than Cheche Group. It trades about 0.03 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 142.00 in Onfolio Holdings on August 31, 2024 and sell it today you would lose (11.00) from holding Onfolio Holdings or give up 7.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.41% |
| Values | Daily Returns |
Onfolio Holdings vs. Cheche Group Warrant
Performance |
| Timeline |
| Onfolio Holdings |
| Cheche Group Warrant |
Onfolio Holdings and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onfolio Holdings and Cheche Group
The main advantage of trading using opposite Onfolio Holdings and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onfolio 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.| Onfolio Holdings vs. Vivid Seats | Onfolio Holdings vs. EverQuote Class A | Onfolio Holdings vs. Asset Entities Class | Onfolio Holdings vs. Zhihu Inc ADR |
| Cheche Group vs. United Parks Resorts | Cheche Group vs. NiSource | Cheche Group vs. Transportadora de Gas | Cheche Group vs. Antero Midstream Partners |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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