Correlation Between Kuaishou Technology and Thryv Holdings

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

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

Diversification Opportunities for Kuaishou Technology and Thryv Holdings

-0.21

Correlation Coefficient

Kuaishou Technology  Thryv Holdings

Very good diversification

The 3 months correlation between Kuaishou and Thryv is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kuaishou Technology and Thryv Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thryv Holdings and Kuaishou Technology 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 Kuaishou Technology are associated (or correlated) with Thryv Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thryv Holdings has no effect on the direction of Kuaishou Technology i.e., Kuaishou Technology and Thryv Holdings go up and down completely randomly.

Pair Corralation between Kuaishou Technology and Thryv Holdings

Assuming the 90 days horizon Kuaishou Technology is expected to generate 49.25 times less return on investment than Thryv Holdings. But when comparing it to its historical volatility, Kuaishou Technology is 34.34 times less risky than Thryv Holdings. It trades about 0.21 of its potential returns per unit of risk. Thryv Holdings is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  1,480  in Thryv Holdings on November 1, 2024 and sell it today you would earn a total of  255.00  from holding Thryv Holdings or generate 17.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

Kuaishou Technology  vs.  Thryv Holdings

Kuaishou Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kuaishou Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Thryv Holdings

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thryv Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Thryv Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kuaishou Technology and Thryv Holdings

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

The idea behind Kuaishou Technology and Thryv Holdings 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.