BABA vs. TCEHY
BABA (Alibaba Group Holding Limited) and TCEHY (Tencent Holdings Limited) are both stocks. BABA operates in Internet Retail (Consumer Cyclical), while TCEHY operates in Internet Content & Information (Communication Services). Over the past 10 years, BABA returned 3.87%/yr vs 11.04%/yr for TCEHY. A 0.65 correlation means they provide meaningful diversification when combined.
Performance
BABA vs. TCEHY - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with BABA having a -27.73% return and TCEHY slightly higher at -26.90%. Over the past 10 years, BABA has underperformed TCEHY with an annualized return of 3.87%, while TCEHY has yielded a comparatively higher 11.04% annualized return.
BABA
- 1D
- -1.99%
- 1M
- -18.51%
- YTD
- -27.73%
- 6M
- -29.83%
- 1Y
- -6.26%
- 3Y*
- 9.52%
- 5Y*
- -12.29%
- 10Y*
- 3.87%
TCEHY
- 1D
- -1.41%
- 1M
- -1.36%
- YTD
- -26.90%
- 6M
- -29.11%
- 1Y
- -12.57%
- 3Y*
- 10.29%
- 5Y*
- -3.63%
- 10Y*
- 11.04%
BABA vs. TCEHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BABA Alibaba Group Holding Limited | -27.73% | 75.80% | 11.77% | -10.83% | -25.84% | -48.96% | 9.73% | 54.74% | -20.51% | 96.37% |
TCEHY Tencent Holdings Limited | -26.90% | 45.23% | 41.92% | -5.48% | -24.97% | -18.69% | 50.09% | 21.93% | -23.83% | 115.30% |
Correlation
The correlation between BABA and TCEHY is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Sep 19, 2014 | 0.65 |
The correlation between BABA and TCEHY has been stable across timeframes, ranging from 0.64 to 0.74 - a consistent structural relationship.
Fundamentals
BABA:
$253.49B
TCEHY:
$507.36B
BABA:
CN¥33.90
TCEHY:
CN¥25.30
BABA:
20.96
TCEHY:
14.80
BABA:
0.94
TCEHY:
1.85
BABA:
2.11
TCEHY:
4.53
BABA:
1.62
TCEHY:
3.06
BABA:
CN¥811.51B
TCEHY:
CN¥763.32B
BABA:
CN¥332.88B
TCEHY:
CN¥422.60B
BABA:
CN¥112.44B
TCEHY:
CN¥324.78B
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Return for Risk
BABA vs. TCEHY — Risk / Return Rank
BABA
TCEHY
BABA vs. TCEHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Alibaba Group Holding Limited (BABA) and Tencent Holdings Limited (TCEHY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BABA | TCEHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.26 | ||
| Sortino ratioReturn per unit of downside risk | +0.54 | ||
| Omega ratioGain probability vs. loss probability | 1.01 | 0.95 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | -0.14 | -0.34 | +0.20 |
| Martin ratioReturn relative to average drawdown | -0.31 | -0.70 | +0.39 |
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Drawdowns
BABA vs. TCEHY - Drawdown Comparison
The maximum BABA drawdown since its inception was -80.09%, which is greater than TCEHY's maximum drawdown of -73.17%. Use the drawdown chart below to compare losses from any high point for BABA and TCEHY.
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Drawdown Indicators
| BABA | TCEHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -80.09% | -73.17% | -6.92% |
Max Drawdown (1Y)Largest decline over 1 year | -44.05% | -36.75% | -7.30% |
Max Drawdown (3Y)Largest decline over 3 years | -44.05% | -36.75% | -7.30% |
Max Drawdown (5Y)Largest decline over 5 years | -72.48% | -65.91% | -6.57% |
Max Drawdown (10Y)Largest decline over 10 years | -80.09% | -73.17% | -6.92% |
Current DrawdownCurrent decline from peak | -64.83% | -36.98% | -27.85% |
Average DrawdownAverage peak-to-trough decline | -37.60% | -19.74% | -17.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 20.46% | 18.08% | +2.38% |
Volatility
BABA vs. TCEHY - Volatility Comparison
The current volatility for Alibaba Group Holding Limited (BABA) is 8.04%, while Tencent Holdings Limited (TCEHY) has a volatility of 12.01%. This indicates that BABA experiences smaller price fluctuations and is considered to be less risky than TCEHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BABA | TCEHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.04% | 12.01% | -3.97% |
Volatility (6M)Calculated over the trailing 6-month period | 29.22% | 25.00% | +4.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.84% | 31.18% | +12.66% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 51.46% | 43.26% | +8.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 43.42% | 38.85% | +4.57% |
Dividends
BABA vs. TCEHY - Dividend Comparison
BABA's dividend yield for the trailing twelve months is around 1.00%, less than TCEHY's 1.22% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BABA Alibaba Group Holding Limited | 1.00% | 1.36% | 1.96% | 1.29% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TCEHY Tencent Holdings Limited | 1.22% | 0.76% | 0.82% | 6.67% | 4.15% | 0.35% | 0.19% | 0.23% | 0.26% | 0.29% | 0.51% | 0.21% |
Financials
BABA vs. TCEHY - Financials Comparison
This section allows you to compare key financial metrics between Alibaba Group Holding Limited and Tencent Holdings Limited. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
BABA vs. TCEHY - Profitability Comparison
BABA - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a gross profit of 11.75B and revenue of 35.15B. Therefore, the gross margin over that period was 33.4%.
TCEHY - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tencent Holdings Limited reported a gross profit of 106.58B and revenue of 195.27B. Therefore, the gross margin over that period was 54.6%.
BABA - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported an operating income of -135.47M and revenue of 35.15B, resulting in an operating margin of -0.4%.
TCEHY - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tencent Holdings Limited reported an operating income of 65.72B and revenue of 195.27B, resulting in an operating margin of 33.7%.
BABA - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a net income of 3.69B and revenue of 35.15B, resulting in a net margin of 10.5%.
TCEHY - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tencent Holdings Limited reported a net income of 57.74B and revenue of 195.27B, resulting in a net margin of 29.6%.
Frequently Asked Questions
BABA and TCEHY have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TCEHY has higher volatility (12.01%) compared to BABA (8.04%). In terms of maximum drawdown, BABA dropped -80.09% vs TCEHY's -73.17%.
BABA currently has the higher Sharpe Ratio (-0.14 vs -0.41), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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