Correlation Between Onfolio Holdings and Cheetah Mobile
Can any of the company-specific risk be diversified away by investing in both Onfolio Holdings and Cheetah Mobile 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 Cheetah Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onfolio Holdings and Cheetah Mobile, you can compare the effects of market volatilities on Onfolio Holdings and Cheetah Mobile 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 Cheetah Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onfolio Holdings and Cheetah Mobile.
Diversification Opportunities for Onfolio Holdings and Cheetah Mobile
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Onfolio and Cheetah is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Onfolio Holdings and Cheetah Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheetah Mobile 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 Cheetah Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheetah Mobile has no effect on the direction of Onfolio Holdings i.e., Onfolio Holdings and Cheetah Mobile go up and down completely randomly.
Pair Corralation between Onfolio Holdings and Cheetah Mobile
Given the investment horizon of 90 days Onfolio Holdings is expected to under-perform the Cheetah Mobile. In addition to that, Onfolio Holdings is 1.53 times more volatile than Cheetah Mobile. It trades about -0.02 of its total potential returns per unit of risk. Cheetah Mobile is currently generating about 0.15 per unit of volatility. If you would invest 456.00 in Cheetah Mobile on August 30, 2024 and sell it today you would earn a total of 61.00 from holding Cheetah Mobile or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onfolio Holdings vs. Cheetah Mobile
Performance |
| Timeline |
| Onfolio Holdings |
| Cheetah Mobile |
Onfolio Holdings and Cheetah Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onfolio Holdings and Cheetah Mobile
The main advantage of trading using opposite Onfolio Holdings and Cheetah Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onfolio Holdings position performs unexpectedly, Cheetah Mobile 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 Cheetah Mobile will offset losses from the drop in Cheetah Mobile'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 |
| Cheetah Mobile vs. Tuniu Corp | Cheetah Mobile vs. Yirendai | Cheetah Mobile vs. Xunlei Ltd Adr | Cheetah Mobile vs. Phoenix New Media |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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