Correlation Between Stratasys and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Cheche Group Class, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Cheche Group.
Diversification Opportunities for Stratasys and Cheche Group
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stratasys and Cheche is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys 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 Stratasys 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 Stratasys 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 Stratasys i.e., Stratasys and Cheche Group go up and down completely randomly.
Pair Corralation between Stratasys and Cheche Group
Given the investment horizon of 90 days Stratasys is expected to generate 1.18 times more return on investment than Cheche Group. However, Stratasys is 1.18 times more volatile than Cheche Group Class. It trades about 0.1 of its potential returns per unit of risk. Cheche Group Class is currently generating about 0.06 per unit of risk. If you would invest 725.00 in Stratasys on October 12, 2024 and sell it today you would earn a total of 175.00 from holding Stratasys or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Cheche Group Class
Performance |
| Timeline |
| Stratasys |
| Cheche Group Class |
Stratasys and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Cheche Group
The main advantage of trading using opposite Stratasys and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| Cheche Group vs. Alignment Healthcare LLC | Cheche Group vs. Emerson Electric | Cheche Group vs. Western Acquisition Ventures | Cheche Group vs. Highway Holdings Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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