Correlation Between Genius Sports and TuanChe ADR
Can any of the company-specific risk be diversified away by investing in both Genius Sports 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 Genius Sports and TuanChe ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Sports and TuanChe ADR, you can compare the effects of market volatilities on Genius Sports 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 Genius Sports with a short position of TuanChe ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and TuanChe ADR.
Diversification Opportunities for Genius Sports and TuanChe ADR
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genius and TuanChe is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and TuanChe ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TuanChe ADR and Genius Sports 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 Genius Sports 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 Genius Sports i.e., Genius Sports and TuanChe ADR go up and down completely randomly.
Pair Corralation between Genius Sports and TuanChe ADR
Given the investment horizon of 90 days Genius Sports is expected to under-perform the TuanChe ADR. But the stock apears to be less risky and, when comparing its historical volatility, Genius Sports is 1.72 times less risky than TuanChe ADR. The stock trades about -0.32 of its potential returns per unit of risk. The TuanChe ADR is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 177.00 in TuanChe ADR on December 29, 2023 and sell it today you would lose (19.00) from holding TuanChe ADR or give up 10.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Genius Sports vs. TuanChe ADR
Performance |
Timeline |
Genius Sports |
TuanChe ADR |
Genius Sports and TuanChe ADR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genius Sports and TuanChe ADR
The main advantage of trading using opposite Genius Sports and TuanChe ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Sports 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.Genius Sports vs. Zhihu Inc ADR | Genius Sports vs. DouYu International Holdings | Genius Sports vs. Outbrain | Genius Sports vs. Zillow Group Class |
TuanChe ADR vs. Zhihu Inc ADR | TuanChe ADR vs. DouYu International Holdings | TuanChe ADR vs. Outbrain | TuanChe ADR vs. Zillow Group Class |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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