Correlation Between TuanChe ADR and VEON
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and VEON 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 VEON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and VEON, you can compare the effects of market volatilities on TuanChe ADR and VEON 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 VEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and VEON.
Diversification Opportunities for TuanChe ADR and VEON
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TuanChe and VEON is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and VEON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEON 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 VEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEON has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and VEON go up and down completely randomly.
Pair Corralation between TuanChe ADR and VEON
Allowing for the 90-day total investment horizon TuanChe ADR is expected to generate 2.17 times more return on investment than VEON. However, TuanChe ADR is 2.17 times more volatile than VEON. It trades about 0.13 of its potential returns per unit of risk. VEON is currently generating about 0.14 per unit of risk. If you would invest 91.00 in TuanChe ADR on September 4, 2024 and sell it today you would earn a total of 12.00 from holding TuanChe ADR or generate 13.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. VEON
Performance |
| Timeline |
| TuanChe ADR |
| VEON |
TuanChe ADR and VEON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and VEON
The main advantage of trading using opposite TuanChe ADR and VEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, VEON 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 VEON will offset losses from the drop in VEON's long position.| TuanChe ADR vs. Asset Entities Class | TuanChe ADR vs. Shutterstock | TuanChe ADR vs. Match Group | TuanChe ADR vs. Snap Inc |
| VEON vs. Telecom Argentina SA | VEON vs. Telkom Indonesia Tbk | VEON vs. PLDT Inc ADR | VEON vs. Telefonica Brasil SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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