Correlation Between TuanChe ADR and Cardlytics
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Cardlytics 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 Cardlytics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Cardlytics, you can compare the effects of market volatilities on TuanChe ADR and Cardlytics 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 Cardlytics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Cardlytics.
Diversification Opportunities for TuanChe ADR and Cardlytics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TuanChe and Cardlytics is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Cardlytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardlytics 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 Cardlytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardlytics has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Cardlytics go up and down completely randomly.
Pair Corralation between TuanChe ADR and Cardlytics
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Cardlytics. But the stock apears to be less risky and, when comparing its historical volatility, TuanChe ADR is 1.05 times less risky than Cardlytics. The stock trades about -0.32 of its potential returns per unit of risk. The Cardlytics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 404.00 in Cardlytics on August 27, 2024 and sell it today you would lose (11.00) from holding Cardlytics or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Cardlytics
Performance |
| Timeline |
| TuanChe ADR |
| Cardlytics |
TuanChe ADR and Cardlytics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Cardlytics
The main advantage of trading using opposite TuanChe ADR and Cardlytics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Cardlytics 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 Cardlytics will offset losses from the drop in Cardlytics' long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| Cardlytics vs. Criteo Sa | Cardlytics vs. Deluxe | Cardlytics vs. Emerald Expositions Events | Cardlytics vs. Marchex |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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