Correlation Between STATE and Cheche Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between STATE STREET P and Cheche Group Class, you can compare the effects of market volatilities on STATE and Cheche 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 STATE with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of STATE and Cheche Group.
Diversification Opportunities for STATE and Cheche Group
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between STATE and Cheche is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding STATE STREET P and Cheche Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Class and STATE 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 STATE STREET P are associated (or correlated) with Cheche Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheche Group Class has no effect on the direction of STATE i.e., STATE and Cheche Group go up and down completely randomly.
Pair Corralation between STATE and Cheche Group
Assuming the 90 days trading horizon STATE is expected to generate 7.89 times less return on investment than Cheche Group. But when comparing it to its historical volatility, STATE STREET P is 4.01 times less risky than Cheche Group. It trades about 0.08 of its potential returns per unit of risk. Cheche Group Class is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 86.00 in Cheche Group Class on October 9, 2024 and sell it today you would earn a total of 9.00 from holding Cheche Group Class or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STATE STREET P vs. Cheche Group Class
Performance |
| Timeline |
| STATE STREET P |
| Cheche Group Class |
STATE and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STATE and Cheche Group
The main advantage of trading using opposite STATE and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STATE position performs unexpectedly, Cheche 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 Cheche Group will offset losses from the drop in Cheche Group's long position.The idea behind STATE STREET P and Cheche Group Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cheche Group vs. Xunlei Ltd Adr | Cheche Group vs. CarsalesCom Ltd ADR | Cheche Group vs. Deluxe | Cheche Group vs. Ainsworth Game Technology |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |