Correlation Between TuanChe ADR and Hello
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Hello 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 TuanChe ADR and Hello into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Hello Group, you can compare the effects of market volatilities on TuanChe ADR and Hello 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 TuanChe ADR with a short position of Hello. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Hello.
Diversification Opportunities for TuanChe ADR and Hello
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TuanChe and Hello is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Hello Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hello Group and TuanChe ADR 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 TuanChe ADR are associated (or correlated) with Hello. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hello Group has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Hello go up and down completely randomly.
Pair Corralation between TuanChe ADR and Hello
Allowing for the 90-day total investment horizon TuanChe ADR is expected to generate 1.12 times less return on investment than Hello. In addition to that, TuanChe ADR is 1.81 times more volatile than Hello Group. It trades about 0.15 of its total potential returns per unit of risk. Hello Group is currently generating about 0.31 per unit of volatility. If you would invest 548.00 in Hello Group on April 19, 2025 and sell it today you would earn a total of 342.00 from holding Hello Group or generate 62.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Hello Group
Performance |
| Timeline |
| TuanChe ADR |
| Hello Group |
TuanChe ADR and Hello Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Hello
The main advantage of trading using opposite TuanChe ADR and Hello positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Hello 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 Hello will offset losses from the drop in Hello's long position.| TuanChe ADR vs. 36Kr Holdings | TuanChe ADR vs. Metalpha Technology Holding | TuanChe ADR vs. Asset Entities Class | TuanChe ADR vs. Locafy |
| Hello vs. Weibo Corp | Hello vs. DouYu International Holdings | Hello vs. Tencent Music Entertainment | Hello vs. Autohome |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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