Correlation Between Cheche Group and OS Therapies
Can any of the company-specific risk be diversified away by investing in both Cheche Group and OS Therapies 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 Cheche Group and OS Therapies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheche Group Class and OS Therapies Incorporated, you can compare the effects of market volatilities on Cheche Group and OS Therapies 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 Cheche Group with a short position of OS Therapies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and OS Therapies.
Diversification Opportunities for Cheche Group and OS Therapies
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cheche and OSTX is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and OS Therapies Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OS Therapies and Cheche Group 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 Cheche Group Class are associated (or correlated) with OS Therapies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OS Therapies has no effect on the direction of Cheche Group i.e., Cheche Group and OS Therapies go up and down completely randomly.
Pair Corralation between Cheche Group and OS Therapies
Considering the 90-day investment horizon Cheche Group Class is expected to generate 0.25 times more return on investment than OS Therapies. However, Cheche Group Class is 4.01 times less risky than OS Therapies. It trades about 0.1 of its potential returns per unit of risk. OS Therapies Incorporated is currently generating about -0.05 per unit of risk. If you would invest 83.00 in Cheche Group Class on October 25, 2024 and sell it today you would earn a total of 4.00 from holding Cheche Group Class or generate 4.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cheche Group Class vs. OS Therapies Incorporated
Performance |
Timeline |
Cheche Group Class |
OS Therapies |
Cheche Group and OS Therapies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cheche Group and OS Therapies
The main advantage of trading using opposite Cheche Group and OS Therapies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, OS Therapies 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 OS Therapies will offset losses from the drop in OS Therapies' long position.Cheche Group vs. Procter Gamble | Cheche Group vs. TFI International | Cheche Group vs. National CineMedia | Cheche Group vs. Sphere Entertainment Co |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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