Correlation Between TuanChe ADR and IClick Interactive
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and IClick Interactive 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 IClick Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and iClick Interactive Asia, you can compare the effects of market volatilities on TuanChe ADR and IClick Interactive 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 IClick Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and IClick Interactive.
Diversification Opportunities for TuanChe ADR and IClick Interactive
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TuanChe and IClick is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia 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 IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and IClick Interactive go up and down completely randomly.
Pair Corralation between TuanChe ADR and IClick Interactive
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the IClick Interactive. But the stock apears to be less risky and, when comparing its historical volatility, TuanChe ADR is 1.15 times less risky than IClick Interactive. The stock trades about -0.06 of its potential returns per unit of risk. The iClick Interactive Asia is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 293.00 in iClick Interactive Asia on August 28, 2024 and sell it today you would earn a total of 266.00 from holding iClick Interactive Asia or generate 90.78% 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. iClick Interactive Asia
Performance |
| Timeline |
| TuanChe ADR |
| iClick Interactive Asia |
TuanChe ADR and IClick Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and IClick Interactive
The main advantage of trading using opposite TuanChe ADR and IClick Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, IClick Interactive 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 IClick Interactive will offset losses from the drop in IClick Interactive's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| IClick Interactive vs. Mirriad Advertising plc | IClick Interactive vs. INEO Tech Corp | IClick Interactive vs. Kidoz Inc | IClick Interactive 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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