Correlation Between News Corp and Scienjoy Holding

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

By analyzing existing cross correlation between News Corp B and Scienjoy Holding Corp, you can compare the effects of market volatilities on News Corp and Scienjoy Holding 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 News Corp with a short position of Scienjoy Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Scienjoy Holding.

Diversification Opportunities for News Corp and Scienjoy Holding

0.38

Correlation Coefficient

News Corp  Scienjoy Holding

Weak diversification

The 3 months correlation between News and Scienjoy is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding News Corp B and Scienjoy Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienjoy Holding Corp and News Corp 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 News Corp B are associated (or correlated) with Scienjoy Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienjoy Holding Corp has no effect on the direction of News Corp i.e., News Corp and Scienjoy Holding go up and down completely randomly.

Pair Corralation between News Corp and Scienjoy Holding

Considering the 90-day investment horizon News Corp B is expected to under-perform the Scienjoy Holding. But the stock apears to be less risky and, when comparing its historical volatility, News Corp B is 11.21 times less risky than Scienjoy Holding. The stock trades about -0.01 of its potential returns per unit of risk. The Scienjoy Holding Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  76.00  in Scienjoy Holding Corp on October 20, 2024 and sell it today you would earn a total of  9.00  from holding Scienjoy Holding Corp or generate 11.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

News Corp B  vs.  Scienjoy Holding Corp

News Corp B

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in News Corp B are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, News Corp may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Scienjoy Holding Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Scienjoy Holding Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Scienjoy Holding may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with News Corp and Scienjoy Holding

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

The idea behind News Corp B and Scienjoy Holding Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.