Correlation Between TuanChe ADR and U S Cellular
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and U S Cellular 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 U S Cellular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and United States Cellular, you can compare the effects of market volatilities on TuanChe ADR and U S Cellular 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 U S Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and U S Cellular.
Diversification Opportunities for TuanChe ADR and U S Cellular
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TuanChe and USM is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and United States Cellular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Cellular 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 U S Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Cellular has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and U S Cellular go up and down completely randomly.
Pair Corralation between TuanChe ADR and U S Cellular
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the U S Cellular. In addition to that, TuanChe ADR is 2.28 times more volatile than United States Cellular. It trades about -0.32 of its total potential returns per unit of risk. United States Cellular is currently generating about 0.08 per unit of volatility. If you would invest 6,207 in United States Cellular on August 27, 2024 and sell it today you would earn a total of 292.00 from holding United States Cellular or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. United States Cellular
Performance |
| Timeline |
| TuanChe ADR |
| United States Cellular |
TuanChe ADR and U S Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and U S Cellular
The main advantage of trading using opposite TuanChe ADR and U S Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, U S Cellular 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 U S Cellular will offset losses from the drop in U S Cellular's long position.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| U S Cellular vs. Telephone and Data | U S Cellular vs. Vodafone Group PLC | U S Cellular vs. Lumen Technologies | U S Cellular vs. Altice USA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |