Correlation Between Lizhi and Match

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

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

Diversification Opportunities for Lizhi and Match

0.0

Correlation Coefficient

Lizhi  Match

Pay attention - limited upside

The 3 months correlation between Lizhi and Match is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lizhi Inc and Match Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Match Group and Lizhi 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 Lizhi Inc are associated (or correlated) with Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Match Group has no effect on the direction of Lizhi i.e., Lizhi and Match go up and down completely randomly.

Pair Corralation between Lizhi and Match

If you would invest (100.00) in Lizhi Inc on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Lizhi Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lizhi Inc  vs.  Match Group

Lizhi Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lizhi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Lizhi is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Match Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Match Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Match is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Lizhi and Match

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

The idea behind Lizhi Inc and Match Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.