Correlation Between Weibo Corp and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and Cheche 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 Weibo Corp and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and Cheche Group Warrant, you can compare the effects of market volatilities on Weibo Corp 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 Weibo Corp with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and Cheche Group.
Diversification Opportunities for Weibo Corp and Cheche Group
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Weibo and Cheche is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and Cheche Group Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Warrant and Weibo Corp 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 Weibo Corp 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 Warrant has no effect on the direction of Weibo Corp i.e., Weibo Corp and Cheche Group go up and down completely randomly.
Pair Corralation between Weibo Corp and Cheche Group
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 0.29 times more return on investment than Cheche Group. However, Weibo Corp is 3.44 times less risky than Cheche Group. It trades about 0.13 of its potential returns per unit of risk. Cheche Group Warrant is currently generating about -0.01 per unit of risk. If you would invest 1,003 in Weibo Corp on November 29, 2024 and sell it today you would earn a total of 79.00 from holding Weibo Corp or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weibo Corp vs. Cheche Group Warrant
Performance |
| Timeline |
| Weibo Corp |
| Cheche Group Warrant |
Weibo Corp and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and Cheche Group
The main advantage of trading using opposite Weibo Corp and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp 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.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
| Cheche Group vs. Coupang LLC | Cheche Group vs. Constellation Brands Class | Cheche Group vs. Fomento Economico Mexicano | Cheche Group vs. Lululemon Athletica |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |