Correlation Between TuanChe ADR and Starbox Group
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Starbox Group 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 Starbox Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Starbox Group Holdings, you can compare the effects of market volatilities on TuanChe ADR and Starbox Group 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 Starbox Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Starbox Group.
Diversification Opportunities for TuanChe ADR and Starbox Group
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TuanChe and Starbox is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Starbox Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbox Group Holdings 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 Starbox Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbox Group Holdings has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Starbox Group go up and down completely randomly.
Pair Corralation between TuanChe ADR and Starbox Group
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Starbox Group. But the stock apears to be less risky and, when comparing its historical volatility, TuanChe ADR is 1.17 times less risky than Starbox Group. The stock trades about -0.07 of its potential returns per unit of risk. The Starbox Group Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 352.00 in Starbox Group Holdings on August 26, 2024 and sell it today you would lose (231.00) from holding Starbox Group Holdings or give up 65.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Starbox Group Holdings
Performance |
| Timeline |
| TuanChe ADR |
| Starbox Group Holdings |
TuanChe ADR and Starbox Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Starbox Group
The main advantage of trading using opposite TuanChe ADR and Starbox Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Starbox Group 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 Starbox Group will offset losses from the drop in Starbox Group's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| Starbox Group vs. Trivago NV | Starbox Group vs. Cheetah Mobile | Starbox Group vs. Comscore | Starbox Group vs. Arena Group Holdings |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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