Correlation Between Locafy and Cheer Holding
Can any of the company-specific risk be diversified away by investing in both Locafy and Cheer Holding 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 Locafy and Cheer Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locafy and Cheer Holding, you can compare the effects of market volatilities on Locafy and Cheer Holding 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 Locafy with a short position of Cheer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locafy and Cheer Holding.
Diversification Opportunities for Locafy and Cheer Holding
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Locafy and Cheer is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Locafy and Cheer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Holding and Locafy 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 Locafy are associated (or correlated) with Cheer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Holding has no effect on the direction of Locafy i.e., Locafy and Cheer Holding go up and down completely randomly.
Pair Corralation between Locafy and Cheer Holding
Given the investment horizon of 90 days Locafy is expected to generate 0.5 times more return on investment than Cheer Holding. However, Locafy is 1.98 times less risky than Cheer Holding. It trades about 0.0 of its potential returns per unit of risk. Cheer Holding is currently generating about -0.23 per unit of risk. If you would invest 441.00 in Locafy on August 15, 2025 and sell it today you would lose (57.00) from holding Locafy or give up 12.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Locafy vs. Cheer Holding
Performance |
| Timeline |
| Locafy |
| Cheer Holding |
Locafy and Cheer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locafy and Cheer Holding
The main advantage of trading using opposite Locafy and Cheer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locafy position performs unexpectedly, Cheer Holding 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 Cheer Holding will offset losses from the drop in Cheer Holding's long position.| Locafy vs. Onfolio Holdings | Locafy vs. TEN Holdings, Common | Locafy vs. Cheetah Mobile | Locafy vs. Lendway |
| Cheer Holding vs. Software Acquisition Group | Cheer Holding vs. Kuke Music Holding | Cheer Holding vs. Star Fashion Culture | Cheer Holding vs. Zeta Network Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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