Correlation Between Gatos Silver and Zhihu
Can any of the company-specific risk be diversified away by investing in both Gatos Silver and Zhihu 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 Gatos Silver and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatos Silver and Zhihu Inc ADR, you can compare the effects of market volatilities on Gatos Silver and Zhihu 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 Gatos Silver with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and Zhihu.
Diversification Opportunities for Gatos Silver and Zhihu
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gatos and Zhihu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gatos Silver and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR and Gatos Silver 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 Gatos Silver are associated (or correlated) with Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of Gatos Silver i.e., Gatos Silver and Zhihu go up and down completely randomly.
Pair Corralation between Gatos Silver and Zhihu
If you would invest 368.00 in Zhihu Inc ADR on December 18, 2024 and sell it today you would earn a total of 153.00 from holding Zhihu Inc ADR or generate 41.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Gatos Silver vs. Zhihu Inc ADR
Performance |
Timeline |
Gatos Silver |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Zhihu Inc ADR |
Gatos Silver and Zhihu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gatos Silver and Zhihu
The main advantage of trading using opposite Gatos Silver and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos Silver position performs unexpectedly, Zhihu 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 Zhihu will offset losses from the drop in Zhihu's long position.Gatos Silver vs. Endeavour Silver Corp | Gatos Silver vs. Metalla Royalty Streaming | Gatos Silver vs. New Pacific Metals | Gatos Silver vs. Hecla Mining |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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