Correlation Between TuanChe ADR and Taboola

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

By analyzing existing cross correlation between TuanChe ADR and Taboola, you can compare the effects of market volatilities on TuanChe ADR and Taboola 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 Taboola. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Taboola.

Diversification Opportunities for TuanChe ADR and Taboola

0.71

Correlation Coefficient

TuanChe ADR  Taboola

Poor diversification

The 3 months correlation between TuanChe and Taboola is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Taboola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taboola 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 Taboola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taboola has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Taboola go up and down completely randomly.

Pair Corralation between TuanChe ADR and Taboola

Allowing for the 90-day total investment horizon TuanChe ADR is expected to generate 2.05 times more return on investment than Taboola. However, TuanChe ADR is 2.05 times more volatile than Taboola. It trades about 0.01 of its potential returns per unit of risk. Taboola is currently generating about -0.04 per unit of risk. If you would invest  75.00  in TuanChe ADR on May 14, 2025 and sell it today you would lose (2.00) from holding TuanChe ADR or give up 2.67% of portfolio value over 90 days.

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

TuanChe ADR  vs.  Taboola

TuanChe ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days TuanChe ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, TuanChe ADR is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Taboola

Risk-Adjusted Performance

Weakest

Over the last 90 days Taboola has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Taboola is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TuanChe ADR and Taboola

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

The idea behind TuanChe ADR and Taboola 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.