Correlation Between TuanChe ADR and MoneyHero Limited
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and MoneyHero Limited 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 MoneyHero Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and MoneyHero Limited Class, you can compare the effects of market volatilities on TuanChe ADR and MoneyHero Limited 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 MoneyHero Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and MoneyHero Limited.
Diversification Opportunities for TuanChe ADR and MoneyHero Limited
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TuanChe and MoneyHero is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and MoneyHero Limited Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyHero Limited Class 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 MoneyHero Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyHero Limited Class has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and MoneyHero Limited go up and down completely randomly.
Pair Corralation between TuanChe ADR and MoneyHero Limited
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the MoneyHero Limited. In addition to that, TuanChe ADR is 2.1 times more volatile than MoneyHero Limited Class. It trades about -0.21 of its total potential returns per unit of risk. MoneyHero Limited Class is currently generating about -0.03 per unit of volatility. If you would invest 121.00 in MoneyHero Limited Class on August 30, 2024 and sell it today you would lose (5.00) from holding MoneyHero Limited Class or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TuanChe ADR vs. MoneyHero Limited Class
Performance |
| Timeline |
| TuanChe ADR |
| MoneyHero Limited Class |
TuanChe ADR and MoneyHero Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and MoneyHero Limited
The main advantage of trading using opposite TuanChe ADR and MoneyHero Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, MoneyHero Limited 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 MoneyHero Limited will offset losses from the drop in MoneyHero Limited's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| MoneyHero Limited vs. Hf Foods Group | MoneyHero Limited vs. Universal Music Group | MoneyHero Limited vs. Sligro Food Group | MoneyHero Limited vs. Village Super Market |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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