Correlation Between Cheetah Mobile and ZW Data

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Can any of the company-specific risk be diversified away by investing in both Cheetah Mobile and ZW Data 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 ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheetah Mobile and ZW Data Action, you can compare the effects of market volatilities on Cheetah Mobile and ZW Data 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 ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Mobile and ZW Data.

Diversification Opportunities for Cheetah Mobile and ZW Data

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Cheetah and CNET is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Mobile and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action 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 ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Cheetah Mobile i.e., Cheetah Mobile and ZW Data go up and down completely randomly.

Pair Corralation between Cheetah Mobile and ZW Data

Given the investment horizon of 90 days Cheetah Mobile is expected to generate 0.36 times more return on investment than ZW Data. However, Cheetah Mobile is 2.74 times less risky than ZW Data. It trades about -0.1 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.07 per unit of risk. If you would invest  779.00  in Cheetah Mobile on November 28, 2025 and sell it today you would lose (165.00) from holding Cheetah Mobile or give up 21.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Cheetah Mobile  vs.  ZW Data Action

 Performance 
       Timeline  
Cheetah Mobile 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cheetah Mobile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in March 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.
ZW Data Action 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ZW Data Action has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in March 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Cheetah Mobile and ZW Data Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cheetah Mobile and ZW Data

The main advantage of trading using opposite Cheetah Mobile and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Mobile position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.
The idea behind Cheetah Mobile and ZW Data Action 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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