Correlation Between TuanChe ADR and Gogo
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Gogo 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 Gogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Gogo Inc, you can compare the effects of market volatilities on TuanChe ADR and Gogo 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 Gogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Gogo.
Diversification Opportunities for TuanChe ADR and Gogo
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TuanChe and Gogo is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Gogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogo Inc 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 Gogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogo Inc has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Gogo go up and down completely randomly.
Pair Corralation between TuanChe ADR and Gogo
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Gogo. But the stock apears to be less risky and, when comparing its historical volatility, TuanChe ADR is 1.04 times less risky than Gogo. The stock trades about -0.32 of its potential returns per unit of risk. The Gogo Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 722.00 in Gogo Inc on August 27, 2024 and sell it today you would earn a total of 90.00 from holding Gogo Inc or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Gogo Inc
Performance |
| Timeline |
| TuanChe ADR |
| Gogo Inc |
TuanChe ADR and Gogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Gogo
The main advantage of trading using opposite TuanChe ADR and Gogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Gogo 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 Gogo will offset losses from the drop in Gogo's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| Gogo vs. Digital Ally | Gogo vs. Kandi Technologies Group | Gogo vs. Yelp Inc | Gogo vs. National Beverage Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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