Correlation Between Comstock Holding and Cheche Group

Can any of the company-specific risk be diversified away by investing in both Comstock Holding 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 Comstock Holding and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comstock Holding Companies and Cheche Group Class, you can compare the effects of market volatilities on Comstock Holding 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 Comstock Holding with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and Cheche Group.

Diversification Opportunities for Comstock Holding and Cheche Group

-0.41

Correlation Coefficient

Comstock Holding  Cheche Group

Very good diversification

The 3 months correlation between Comstock and Cheche is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies 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 Comstock Holding 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 Comstock Holding Companies 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 Comstock Holding i.e., Comstock Holding and Cheche Group go up and down completely randomly.

Pair Corralation between Comstock Holding and Cheche Group

Given the investment horizon of 90 days Comstock Holding Companies is expected to generate 0.76 times more return on investment than Cheche Group. However, Comstock Holding Companies is 1.31 times less risky than Cheche Group. It trades about 0.12 of its potential returns per unit of risk. Cheche Group Class is currently generating about 0.03 per unit of risk. If you would invest  802.00  in Comstock Holding Companies on October 22, 2024 and sell it today you would earn a total of  40.00  from holding Comstock Holding Companies or generate 4.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Comstock Holding Companies  vs.  Cheche Group Class

Comstock Holding Com

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comstock Holding Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Cheche Group Class

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cheche Group Class are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Cheche Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Comstock Holding and Cheche Group

The main advantage of trading using opposite Comstock Holding and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding 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 Comstock Holding Companies 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.