Correlation Between DouYu International and Kuaishou Technology

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

Diversification Opportunities for DouYu International and Kuaishou Technology

DouYuKuaishouDiversified AwayDouYuKuaishouDiversified Away100%
-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between DouYu and Kuaishou is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Kuaishou Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuaishou Technology and DouYu International 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 DouYu International Holdings are associated (or correlated) with Kuaishou Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuaishou Technology has no effect on the direction of DouYu International i.e., DouYu International and Kuaishou Technology go up and down completely randomly.

Pair Corralation between DouYu International and Kuaishou Technology

Given the investment horizon of 90 days DouYu International Holdings is expected to under-perform the Kuaishou Technology. In addition to that, DouYu International is 1.52 times more volatile than Kuaishou Technology. It trades about -0.22 of its total potential returns per unit of risk. Kuaishou Technology is currently generating about 0.18 per unit of volatility. If you would invest  539.00  in Kuaishou Technology on November 28, 2024 and sell it today you would earn a total of  161.00  from holding Kuaishou Technology or generate 29.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

DouYu International Holdings  vs.  Kuaishou Technology

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0102030405060
JavaScript chart by amCharts 3.21.15DOYU KUASF
       Timeline  
DouYu International 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days DouYu International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb810121416
Kuaishou Technology 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Kuaishou Technology are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kuaishou Technology reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb55.566.577.5

DouYu International and Kuaishou Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.59-10.17-6.76-3.35-0.05623.266.6310.013.3716.74 0.0060.0080.0100.0120.0140.0160.018
JavaScript chart by amCharts 3.21.15DOYU KUASF
       Returns  

Pair Trading with DouYu International and Kuaishou Technology

The main advantage of trading using opposite DouYu International and Kuaishou Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Kuaishou Technology 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 Kuaishou Technology will offset losses from the drop in Kuaishou Technology's long position.
The idea behind DouYu International Holdings and Kuaishou Technology 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 the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios