Correlation Between TuanChe ADR and Pop Culture
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Pop Culture 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 Pop Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Pop Culture Group, you can compare the effects of market volatilities on TuanChe ADR and Pop Culture 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 Pop Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Pop Culture.
Diversification Opportunities for TuanChe ADR and Pop Culture
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TuanChe and Pop is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Pop Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pop Culture Group 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 Pop Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pop Culture Group has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Pop Culture go up and down completely randomly.
Pair Corralation between TuanChe ADR and Pop Culture
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Pop Culture. In addition to that, TuanChe ADR is 2.37 times more volatile than Pop Culture Group. It trades about -0.29 of its total potential returns per unit of risk. Pop Culture Group is currently generating about -0.11 per unit of volatility. If you would invest 124.00 in Pop Culture Group on August 26, 2024 and sell it today you would lose (10.00) from holding Pop Culture Group or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Pop Culture Group
Performance |
| Timeline |
| TuanChe ADR |
| Pop Culture Group |
TuanChe ADR and Pop Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Pop Culture
The main advantage of trading using opposite TuanChe ADR and Pop Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Pop Culture 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 Pop Culture will offset losses from the drop in Pop Culture's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| Pop Culture vs. MultiMetaVerse Holdings Limited | Pop Culture vs. Hollywall Entertainment | Pop Culture vs. Kuke Music Holding | Pop Culture vs. Reading International |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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