Correlation Between Cheetah Mobile and Upexi

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

By analyzing existing cross correlation between Cheetah Mobile and Upexi Inc, you can compare the effects of market volatilities on Cheetah Mobile and Upexi 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 Cheetah Mobile with a short position of Upexi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Mobile and Upexi.

Diversification Opportunities for Cheetah Mobile and Upexi

-0.15

Correlation Coefficient

Cheetah Mobile  Upexi

Good diversification

The 3 months correlation between Cheetah and Upexi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Mobile and Upexi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upexi Inc and Cheetah Mobile 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 Cheetah Mobile are associated (or correlated) with Upexi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upexi Inc has no effect on the direction of Cheetah Mobile i.e., Cheetah Mobile and Upexi go up and down completely randomly.

Pair Corralation between Cheetah Mobile and Upexi

Given the investment horizon of 90 days Cheetah Mobile is expected to generate 0.66 times more return on investment than Upexi. However, Cheetah Mobile is 1.51 times less risky than Upexi. It trades about 0.0 of its potential returns per unit of risk. Upexi Inc is currently generating about -0.08 per unit of risk. If you would invest  476.00  in Cheetah Mobile on December 29, 2024 and sell it today you would lose (38.00) from holding Cheetah Mobile or give up 7.98% of portfolio value over 90 days.

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

Cheetah Mobile  vs.  Upexi Inc

Cheetah Mobile

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cheetah Mobile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Cheetah Mobile is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Upexi Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Cheetah Mobile and Upexi

The main advantage of trading using opposite Cheetah Mobile and Upexi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Mobile position performs unexpectedly, Upexi 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 Upexi will offset losses from the drop in Upexi's long position.

The idea behind Cheetah Mobile and Upexi Inc 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.