Correlation Between Cheetah Mobile and Phoenix New
Can any of the company-specific risk be diversified away by investing in both Cheetah Mobile and Phoenix New 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 Phoenix New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheetah Mobile and Phoenix New Media, you can compare the effects of market volatilities on Cheetah Mobile and Phoenix New 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 Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Mobile and Phoenix New.
Diversification Opportunities for Cheetah Mobile and Phoenix New
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cheetah and Phoenix is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Mobile and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media 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 Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of Cheetah Mobile i.e., Cheetah Mobile and Phoenix New go up and down completely randomly.
Pair Corralation between Cheetah Mobile and Phoenix New
Given the investment horizon of 90 days Cheetah Mobile is expected to generate 1.15 times more return on investment than Phoenix New. However, Cheetah Mobile is 1.15 times more volatile than Phoenix New Media. It trades about 0.22 of its potential returns per unit of risk. Phoenix New Media is currently generating about 0.09 per unit of risk. If you would invest 403.00 in Cheetah Mobile on June 12, 2025 and sell it today you would earn a total of 305.00 from holding Cheetah Mobile or generate 75.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheetah Mobile vs. Phoenix New Media
Performance |
| Timeline |
| Cheetah Mobile |
| Phoenix New Media |
Cheetah Mobile and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheetah Mobile and Phoenix New
The main advantage of trading using opposite Cheetah Mobile and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Mobile position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New's long position.| Cheetah Mobile vs. Phoenix New Media | Cheetah Mobile vs. DGTL Holdings | Cheetah Mobile vs. Tuniu Corp | Cheetah Mobile vs. Yirendai |
| Phoenix New vs. Cheetah Mobile | Phoenix New vs. Asset Entities Class | Phoenix New vs. Thryv Holdings | Phoenix New vs. LightInTheBox Holding Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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