Correlation Between TuanChe ADR and Tinybeans Group
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Tinybeans 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 Tinybeans 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 Tinybeans Group Limited, you can compare the effects of market volatilities on TuanChe ADR and Tinybeans 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 Tinybeans Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Tinybeans Group.
Diversification Opportunities for TuanChe ADR and Tinybeans Group
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TuanChe and Tinybeans is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Tinybeans Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinybeans Group 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 Tinybeans Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinybeans Group has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Tinybeans Group go up and down completely randomly.
Pair Corralation between TuanChe ADR and Tinybeans Group
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Tinybeans Group. In addition to that, TuanChe ADR is 2.13 times more volatile than Tinybeans Group Limited. It trades about -0.22 of its total potential returns per unit of risk. Tinybeans Group Limited is currently generating about -0.22 per unit of volatility. If you would invest 0.60 in Tinybeans Group Limited on August 27, 2024 and sell it today you would lose (0.10) from holding Tinybeans Group Limited or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Tinybeans Group Limited
Performance |
| Timeline |
| TuanChe ADR |
| Tinybeans Group |
TuanChe ADR and Tinybeans Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Tinybeans Group
The main advantage of trading using opposite TuanChe ADR and Tinybeans Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Tinybeans 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 Tinybeans Group will offset losses from the drop in Tinybeans 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 |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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