Correlation Between TuanChe ADR and BuzzFeed
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and BuzzFeed 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 TuanChe ADR and BuzzFeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and BuzzFeed, you can compare the effects of market volatilities on TuanChe ADR and BuzzFeed 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 TuanChe ADR with a short position of BuzzFeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and BuzzFeed.
Diversification Opportunities for TuanChe ADR and BuzzFeed
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TuanChe and BuzzFeed is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and BuzzFeed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BuzzFeed and TuanChe ADR 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 TuanChe ADR are associated (or correlated) with BuzzFeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BuzzFeed has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and BuzzFeed go up and down completely randomly.
Pair Corralation between TuanChe ADR and BuzzFeed
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the BuzzFeed. In addition to that, TuanChe ADR is 1.02 times more volatile than BuzzFeed. It trades about -0.21 of its total potential returns per unit of risk. BuzzFeed is currently generating about 0.38 per unit of volatility. If you would invest 251.00 in BuzzFeed on August 30, 2024 and sell it today you would earn a total of 196.00 from holding BuzzFeed or generate 78.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TuanChe ADR vs. BuzzFeed
Performance |
| Timeline |
| TuanChe ADR |
| BuzzFeed |
TuanChe ADR and BuzzFeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and BuzzFeed
The main advantage of trading using opposite TuanChe ADR and BuzzFeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, BuzzFeed 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 BuzzFeed will offset losses from the drop in BuzzFeed's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| BuzzFeed vs. MediaAlpha | BuzzFeed vs. Asset Entities Class | BuzzFeed vs. Yelp Inc | BuzzFeed vs. Shutterstock |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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