Correlation Between Cheche Group and First Solar
Can any of the company-specific risk be diversified away by investing in both Cheche Group and First Solar 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 First Solar 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 First Solar, you can compare the effects of market volatilities on Cheche Group and First Solar 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 First Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and First Solar.
Diversification Opportunities for Cheche Group and First Solar
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheche and First is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and First Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Solar 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 First Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Solar has no effect on the direction of Cheche Group i.e., Cheche Group and First Solar go up and down completely randomly.
Pair Corralation between Cheche Group and First Solar
Considering the 90-day investment horizon Cheche Group Class is expected to generate 0.47 times more return on investment than First Solar. However, Cheche Group Class is 2.14 times less risky than First Solar. It trades about -0.03 of its potential returns per unit of risk. First Solar is currently generating about -0.05 per unit of risk. If you would invest 78.00 in Cheche Group Class on April 15, 2025 and sell it today you would lose (1.50) from holding Cheche Group Class or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Class vs. First Solar
Performance |
| Timeline |
| Cheche Group Class |
| First Solar |
Cheche Group and First Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and First Solar
The main advantage of trading using opposite Cheche Group and First Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group position performs unexpectedly, First Solar 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 First Solar will offset losses from the drop in First Solar's long position.| Cheche Group vs. Emerson Radio | Cheche Group vs. Affinity Beverage Group | Cheche Group vs. ANTA Sports Products | Cheche Group vs. The Coca Cola |
| First Solar vs. SolarEdge Technologies | First Solar vs. Enphase Energy | First Solar vs. Canadian Solar | First Solar vs. Sunrun Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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