Correlation Between TuanChe ADR and Zedge
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Zedge 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 Zedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Zedge Inc, you can compare the effects of market volatilities on TuanChe ADR and Zedge 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 Zedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Zedge.
Diversification Opportunities for TuanChe ADR and Zedge
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TuanChe and Zedge is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Zedge Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedge Inc 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 Zedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedge Inc has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Zedge go up and down completely randomly.
Pair Corralation between TuanChe ADR and Zedge
Allowing for the 90-day total investment horizon TuanChe ADR is expected to generate 1.45 times more return on investment than Zedge. However, TuanChe ADR is 1.45 times more volatile than Zedge Inc. It trades about 0.13 of its potential returns per unit of risk. Zedge Inc is currently generating about -0.05 per unit of risk. If you would invest 1,200 in TuanChe ADR on August 14, 2025 and sell it today you would earn a total of 641.00 from holding TuanChe ADR or generate 53.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Zedge Inc
Performance |
| Timeline |
| TuanChe ADR |
| Zedge Inc |
TuanChe ADR and Zedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Zedge
The main advantage of trading using opposite TuanChe ADR and Zedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Zedge 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 Zedge will offset losses from the drop in Zedge's long position.| TuanChe ADR vs. MoneyHero Limited Class | TuanChe ADR vs. Zedge Inc | TuanChe ADR vs. Courtside Group, Common | TuanChe ADR vs. Comscore |
| Zedge vs. Courtside Group, Common | Zedge vs. TuanChe ADR | Zedge vs. The Beachbody Company, | Zedge vs. Comscore |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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