Correlation Between Jianzhi Education and Digimarc

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

By analyzing existing cross correlation between Jianzhi Education Technology and Digimarc, you can compare the effects of market volatilities on Jianzhi Education and Digimarc 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 Jianzhi Education with a short position of Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and Digimarc.

Diversification Opportunities for Jianzhi Education and Digimarc

-0.5

Correlation Coefficient

Jianzhi Education  Digimarc

Very good diversification

The 3 months correlation between Jianzhi and Digimarc is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc and Jianzhi Education 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 Jianzhi Education Technology are associated (or correlated) with Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and Digimarc go up and down completely randomly.

Pair Corralation between Jianzhi Education and Digimarc

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to generate 1.03 times more return on investment than Digimarc. However, Jianzhi Education is 1.03 times more volatile than Digimarc. It trades about 0.01 of its potential returns per unit of risk. Digimarc is currently generating about -0.19 per unit of risk. If you would invest  97.00  in Jianzhi Education Technology on December 28, 2024 and sell it today you would lose (10.00) from holding Jianzhi Education Technology or give up 10.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Jianzhi Education Technology  vs.  Digimarc

Jianzhi Education

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jianzhi Education Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Jianzhi Education is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Digimarc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Digimarc 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 rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Jianzhi Education and Digimarc

The main advantage of trading using opposite Jianzhi Education and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianzhi Education position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.

The idea behind Jianzhi Education Technology and Digimarc 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.