Correlation Between Cheetah Mobile and Bodyflight Sweden
Can any of the company-specific risk be diversified away by investing in both Cheetah Mobile and Bodyflight Sweden 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 Bodyflight Sweden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheetah Mobile and Bodyflight Sweden AB, you can compare the effects of market volatilities on Cheetah Mobile and Bodyflight Sweden 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 Bodyflight Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Mobile and Bodyflight Sweden.
Diversification Opportunities for Cheetah Mobile and Bodyflight Sweden
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheetah and Bodyflight is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Mobile and Bodyflight Sweden AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodyflight Sweden 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 Bodyflight Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodyflight Sweden has no effect on the direction of Cheetah Mobile i.e., Cheetah Mobile and Bodyflight Sweden go up and down completely randomly.
Pair Corralation between Cheetah Mobile and Bodyflight Sweden
If you would invest 232.00 in Cheetah Mobile on January 24, 2024 and sell it today you would earn a total of 141.00 from holding Cheetah Mobile or generate 60.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 5.0% |
Values | Daily Returns |
Cheetah Mobile vs. Bodyflight Sweden AB
Performance |
Timeline |
Cheetah Mobile |
Bodyflight Sweden |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cheetah Mobile and Bodyflight Sweden Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cheetah Mobile and Bodyflight Sweden
The main advantage of trading using opposite Cheetah Mobile and Bodyflight Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Mobile position performs unexpectedly, Bodyflight Sweden 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 Bodyflight Sweden will offset losses from the drop in Bodyflight Sweden's long position.Cheetah Mobile vs. Tuniu Corp | Cheetah Mobile vs. Yirendai | Cheetah Mobile vs. Xunlei Ltd Adr | Cheetah Mobile vs. Phoenix New Media |
Bodyflight Sweden vs. Arena Group Holdings | Bodyflight Sweden vs. Cheetah Mobile | Bodyflight Sweden vs. Thryv Holdings | Bodyflight Sweden vs. Vivid Seats |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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