Correlation Between TuanChe ADR and Liberty Media
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Liberty 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 Liberty 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 Liberty Media, you can compare the effects of market volatilities on TuanChe ADR and Liberty 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 Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Liberty Media.
Diversification Opportunities for TuanChe ADR and Liberty Media
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TuanChe and Liberty is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media 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 Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Liberty Media go up and down completely randomly.
Pair Corralation between TuanChe ADR and Liberty Media
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Liberty Media. In addition to that, TuanChe ADR is 4.09 times more volatile than Liberty Media. It trades about -0.12 of its total potential returns per unit of risk. Liberty Media is currently generating about 0.15 per unit of volatility. If you would invest 7,062 in Liberty Media on August 30, 2024 and sell it today you would earn a total of 1,047 from holding Liberty Media or generate 14.83% 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. Liberty Media
Performance |
| Timeline |
| TuanChe ADR |
| Liberty Media |
TuanChe ADR and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Liberty Media
The main advantage of trading using opposite TuanChe ADR and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Liberty 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 Liberty Media will offset losses from the drop in Liberty 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 |
| Liberty Media vs. News Corp B | Liberty Media vs. Fox Corp Class | Liberty Media vs. AMC Networks | Liberty Media vs. Marcus |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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