Correlation Between ReAlpha Tech and Cheche Group

Can any of the company-specific risk be diversified away by investing in both ReAlpha Tech and Cheche 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 ReAlpha Tech and Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between reAlpha Tech Corp and Cheche Group Class, you can compare the effects of market volatilities on ReAlpha Tech and Cheche 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 ReAlpha Tech with a short position of Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReAlpha Tech and Cheche Group.

Diversification Opportunities for ReAlpha Tech and Cheche Group

0.6

Correlation Coefficient

ReAlpha Tech  Cheche Group

Poor diversification

The 3 months correlation between ReAlpha and Cheche is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding reAlpha Tech Corp and Cheche Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Class and ReAlpha Tech 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 reAlpha Tech Corp are associated (or correlated) with Cheche Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheche Group Class has no effect on the direction of ReAlpha Tech i.e., ReAlpha Tech and Cheche Group go up and down completely randomly.

Pair Corralation between ReAlpha Tech and Cheche Group

Given the investment horizon of 90 days reAlpha Tech Corp is expected to generate 20.4 times more return on investment than Cheche Group. However, ReAlpha Tech is 20.4 times more volatile than Cheche Group Class. It trades about 0.07 of its potential returns per unit of risk. Cheche Group Class is currently generating about -0.03 per unit of risk. If you would invest  55.00  in reAlpha Tech Corp on May 17, 2025 and sell it today you would lose (19.00) from holding reAlpha Tech Corp or give up 34.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

reAlpha Tech Corp  vs.  Cheche Group Class

reAlpha Tech Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in reAlpha Tech Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, ReAlpha Tech exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cheche Group Class

Risk-Adjusted Performance

Weakest

Over the last 90 days Cheche Group Class has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Cheche Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ReAlpha Tech and Cheche Group

The main advantage of trading using opposite ReAlpha Tech and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReAlpha Tech position performs unexpectedly, Cheche 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 Cheche Group will offset losses from the drop in Cheche Group's long position.

The idea behind reAlpha Tech Corp and Cheche Group Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.