Correlation Between GX Nasdaq-100 and TuanChe

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Can any of the company-specific risk be diversified away by investing in both GX Nasdaq-100 and TuanChe 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 GX Nasdaq-100 and TuanChe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GX Nasdaq-100 Covered and TuanChe Limited, you can compare the effects of market volatilities on GX Nasdaq-100 and TuanChe 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 GX Nasdaq-100 with a short position of TuanChe. Check out your portfolio center. Please also check ongoing floating volatility patterns of GX Nasdaq-100 and TuanChe.

Diversification Opportunities for GX Nasdaq-100 and TuanChe

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between GX Nasdaq-100 and TuanChe is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GX Nasdaq-100 Covered and TuanChe Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TuanChe Limited and GX Nasdaq-100 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 GX Nasdaq-100 Covered are associated (or correlated) with TuanChe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TuanChe Limited has no effect on the direction of GX Nasdaq-100 i.e., GX Nasdaq-100 and TuanChe go up and down completely randomly.

Pair Corralation between GX Nasdaq-100 and TuanChe

Given the investment horizon of 90 days GX Nasdaq-100 Covered is expected to under-perform the TuanChe. But the etf apears to be less risky and, when comparing its historical volatility, GX Nasdaq-100 Covered is 3.36 times less risky than TuanChe. The etf trades about -0.1 of its potential returns per unit of risk. The TuanChe Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  212.00  in TuanChe Limited on March 30, 2022 and sell it today you would lose (2.00)  from holding TuanChe Limited or give up 0.94% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GX Nasdaq-100 Covered  vs.  TuanChe Limited

 Performance (%) 
      Timeline 
GX Nasdaq-100 Covered 
GX Nasdaq-100 Performance
0 of 100
Over the last 90 days GX Nasdaq-100 Covered has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Etf's essential indicators remain rather sound which may send shares a bit higher in July 2022. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

GX Nasdaq-100 Price Channel

TuanChe Limited 
TuanChe Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in TuanChe Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, TuanChe may actually be approaching a critical reversion point that can send shares even higher in July 2022.

Structure and Payout Changes

Last Split Factor
1:4
Dividend Date
2020-10-22
Last Split Date
2020-10-22

TuanChe Price Channel

GX Nasdaq-100 and TuanChe Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with GX Nasdaq-100 and TuanChe

The main advantage of trading using opposite GX Nasdaq-100 and TuanChe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GX Nasdaq-100 position performs unexpectedly, TuanChe 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 will offset losses from the drop in TuanChe's long position.

GX Nasdaq-100 Covered

Pair trading matchups for GX Nasdaq-100

The idea behind GX Nasdaq-100 Covered and TuanChe Limited 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.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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