Correlation Between TuanChe ADR and Trump Media
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Trump Media 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 Trump Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Trump Media Technology, you can compare the effects of market volatilities on TuanChe ADR and Trump Media 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 Trump Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Trump Media.
Diversification Opportunities for TuanChe ADR and Trump Media
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TuanChe and Trump is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Trump Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trump Media Technology 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 Trump Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trump Media Technology has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Trump Media go up and down completely randomly.
Pair Corralation between TuanChe ADR and Trump Media
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Trump Media. But the stock apears to be less risky and, when comparing its historical volatility, TuanChe ADR is 1.34 times less risky than Trump Media. The stock trades about -0.06 of its potential returns per unit of risk. The Trump Media Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,145 in Trump Media Technology on August 27, 2024 and sell it today you would earn a total of 932.00 from holding Trump Media Technology or generate 43.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Trump Media Technology
Performance |
| Timeline |
| TuanChe ADR |
| Trump Media Technology |
TuanChe ADR and Trump Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Trump Media
The main advantage of trading using opposite TuanChe ADR and Trump Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Trump Media 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 Trump Media will offset losses from the drop in Trump Media's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| Trump Media vs. Texas Roadhouse | Trump Media vs. Weibo Corp | Trump Media vs. The Wendys Co | Trump Media vs. Bt Brands |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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