Correlation Between TuHURA Biosciences and Zhihu

Can any of the company-specific risk be diversified away by investing in both TuHURA Biosciences 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 TuHURA Biosciences and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TuHURA Biosciences and Zhihu Inc ADR, you can compare the effects of market volatilities on TuHURA Biosciences 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 TuHURA Biosciences with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuHURA Biosciences and Zhihu.

Diversification Opportunities for TuHURA Biosciences and Zhihu

-0.78

Correlation Coefficient

TuHURA Biosciences  Zhihu

Pay attention - limited upside

The 3 months correlation between TuHURA and Zhihu is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding TuHURA Biosciences 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 TuHURA Biosciences 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 TuHURA Biosciences 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 TuHURA Biosciences i.e., TuHURA Biosciences and Zhihu go up and down completely randomly.

Pair Corralation between TuHURA Biosciences and Zhihu

Given the investment horizon of 90 days TuHURA Biosciences is expected to under-perform the Zhihu. In addition to that, TuHURA Biosciences is 1.67 times more volatile than Zhihu Inc ADR. It trades about -0.08 of its total potential returns per unit of risk. Zhihu Inc ADR is currently generating about 0.15 per unit of volatility. 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	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

TuHURA Biosciences  vs.  Zhihu Inc ADR

TuHURA Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days TuHURA Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Zhihu Inc ADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zhihu Inc ADR are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical indicators, Zhihu demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TuHURA Biosciences and Zhihu

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

The idea behind TuHURA Biosciences and Zhihu Inc ADR 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.