Correlation Between TuanChe ADR and Liberty Global
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Liberty Global 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 Global 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 Global PLC, you can compare the effects of market volatilities on TuanChe ADR and Liberty Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Liberty Global.
Diversification Opportunities for TuanChe ADR and Liberty Global
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TuanChe and Liberty is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Liberty Global PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Global PLC 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Global PLC has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Liberty Global go up and down completely randomly.
Pair Corralation between TuanChe ADR and Liberty Global
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Liberty Global. In addition to that, TuanChe ADR is 3.13 times more volatile than Liberty Global PLC. It trades about -0.06 of its total potential returns per unit of risk. Liberty Global PLC is currently generating about 0.04 per unit of volatility. If you would invest 982.00 in Liberty Global PLC on August 27, 2024 and sell it today you would earn a total of 350.00 from holding Liberty Global PLC or generate 35.64% 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. Liberty Global PLC
Performance |
| Timeline |
| TuanChe ADR |
| Liberty Global PLC |
TuanChe ADR and Liberty Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Liberty Global
The main advantage of trading using opposite TuanChe ADR and Liberty Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Liberty Global 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 Global will offset losses from the drop in Liberty Global'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 Global vs. Liberty Global PLC | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Broadband Srs |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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