Correlation Between Super League and Cheetah Mobile

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

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

Diversification Opportunities for Super League and Cheetah Mobile

0.0

Correlation Coefficient

Super League  Cheetah Mobile

Pay attention - limited upside

The 3 months correlation between Super and Cheetah is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Super League Gaming and Cheetah Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheetah Mobile and Super League 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 Super League Gaming are associated (or correlated) with Cheetah Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheetah Mobile has no effect on the direction of Super League i.e., Super League and Cheetah Mobile go up and down completely randomly.

Pair Corralation between Super League and Cheetah Mobile

If you would invest (100.00) in Super League Gaming on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Super League Gaming or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Super League Gaming  vs.  Cheetah Mobile

Super League Gaming

Risk-Adjusted Performance

Very Weak

Over the last 90 days Super League Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Super League is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with Super League and Cheetah Mobile

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

The idea behind Super League Gaming and Cheetah Mobile 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.