Correlation Between LiveOne and TuanChe ADR
Can any of the company-specific risk be diversified away by investing in both LiveOne and TuanChe ADR 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 LiveOne and TuanChe ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiveOne and TuanChe ADR, you can compare the effects of market volatilities on LiveOne and TuanChe ADR 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 LiveOne with a short position of TuanChe ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiveOne and TuanChe ADR.
Diversification Opportunities for LiveOne and TuanChe ADR
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LiveOne and TuanChe is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding LiveOne and TuanChe ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TuanChe ADR and LiveOne 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 LiveOne are associated (or correlated) with TuanChe ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TuanChe ADR has no effect on the direction of LiveOne i.e., LiveOne and TuanChe ADR go up and down completely randomly.
Pair Corralation between LiveOne and TuanChe ADR
Considering the 90-day investment horizon LiveOne is expected to under-perform the TuanChe ADR. In addition to that, LiveOne is 1.25 times more volatile than TuanChe ADR. It trades about -0.07 of its total potential returns per unit of risk. TuanChe ADR is currently generating about 0.02 per unit of volatility. If you would invest 79.00 in TuanChe ADR on March 21, 2025 and sell it today you would earn a total of 0.00 from holding TuanChe ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LiveOne vs. TuanChe ADR
Performance |
| Timeline |
| LiveOne |
| TuanChe ADR |
LiveOne and TuanChe ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiveOne and TuanChe ADR
The main advantage of trading using opposite LiveOne and TuanChe ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiveOne position performs unexpectedly, TuanChe ADR 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 TuanChe ADR will offset losses from the drop in TuanChe ADR's long position.| LiveOne vs. Reading International B | LiveOne vs. Marcus | LiveOne vs. Reading International | LiveOne vs. News Corp B |
| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding | TuanChe ADR vs. Locafy |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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