Correlation Between Exceed Company and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Exceed Company and Alibaba Group 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 Exceed Company and Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exceed Company and Alibaba Group Holding, you can compare the effects of market volatilities on Exceed Company and Alibaba Group 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 Exceed Company with a short position of Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exceed Company and Alibaba Group.
Diversification Opportunities for Exceed Company and Alibaba Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exceed and Alibaba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exceed Company and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding and Exceed Company 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 Exceed Company are associated (or correlated) with Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Exceed Company i.e., Exceed Company and Alibaba Group go up and down completely randomly.
Pair Corralation between Exceed Company and Alibaba Group
If you would invest 7,146 in Alibaba Group Holding on January 25, 2024 and sell it today you would earn a total of 105.00 from holding Alibaba Group Holding or generate 1.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Exceed Company vs. Alibaba Group Holding
Performance |
Timeline |
Exceed Company |
Alibaba Group Holding |
Exceed Company and Alibaba Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exceed Company and Alibaba Group
The main advantage of trading using opposite Exceed Company and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exceed Company position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.Exceed Company vs. Alsea SAB de | Exceed Company vs. Marstons PLC | Exceed Company vs. Dominos Pizza Group | Exceed Company vs. Bagger Daves Burger |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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