Correlation Between Zendesk and TuanChe

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Zendesk 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 Zendesk and TuanChe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zendesk and TuanChe Limited, you can compare the effects of market volatilities on Zendesk 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 Zendesk with a short position of TuanChe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zendesk and TuanChe.

Diversification Opportunities for Zendesk and TuanChe

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Zendesk and TuanChe is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zendesk and TuanChe Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TuanChe Limited and Zendesk 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 Zendesk 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 Zendesk i.e., Zendesk and TuanChe go up and down completely randomly.

Pair Corralation between Zendesk and TuanChe

Considering the 90-day investment horizon Zendesk is expected to under-perform the TuanChe. In addition to that, Zendesk is 1.35 times more volatile than TuanChe Limited. It trades about -0.09 of its total potential returns per unit of risk. TuanChe Limited is currently generating about -0.03 per unit of volatility. If you would invest  228.00  in TuanChe Limited on March 27, 2022 and sell it today you would lose (17.00)  from holding TuanChe Limited or give up 7.46% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Zendesk  vs.  TuanChe Limited

 Performance (%) 
      Timeline 
Zendesk 
Zendesk Performance
0 of 100
Over the last 90 days Zendesk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in July 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Zendesk Price Channel

TuanChe Limited 
TuanChe Performance
0 of 100
Over the last 90 days TuanChe Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, TuanChe is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Structure and Payout Changes

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

TuanChe Price Channel

Zendesk and TuanChe Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Zendesk and TuanChe

The main advantage of trading using opposite Zendesk and TuanChe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zendesk 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.

Zendesk

Pair trading matchups for Zendesk

The idea behind Zendesk 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.

TuanChe Limited

Pair trading matchups for TuanChe

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go