Correlation Between Fang Holdings and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Fang 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 Fang 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 Fang Holdings and Cheche Group Class, you can compare the effects of market volatilities on Fang 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 Fang Holdings with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fang Holdings and Cheche Group.
Diversification Opportunities for Fang Holdings and Cheche Group
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fang and Cheche is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fang Holdings 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 Fang 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 Fang 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 Class has no effect on the direction of Fang Holdings i.e., Fang Holdings and Cheche Group go up and down completely randomly.
Pair Corralation between Fang Holdings and Cheche Group
If you would invest 60.00 in Fang Holdings on August 23, 2024 and sell it today you would earn a total of 0.00 from holding Fang Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Fang Holdings vs. Cheche Group Class
Performance |
| Timeline |
| Fang Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cheche Group Class |
Fang Holdings and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fang Holdings and Cheche Group
The main advantage of trading using opposite Fang Holdings and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fang 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.| Fang Holdings vs. China Finance Online | Fang Holdings vs. Stingray Group | Fang Holdings vs. ManifestSeven Holdings |
| Cheche Group vs. Zillow Group Class | Cheche Group vs. Outbrain | Cheche Group vs. TuanChe ADR | Cheche Group vs. Weibo Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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