Correlation Between Scienjoy Holding and Cumulus Media

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

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

Diversification Opportunities for Scienjoy Holding and Cumulus Media

-0.31

Correlation Coefficient

Scienjoy Holding  Cumulus Media

Very good diversification

The 3 months correlation between Scienjoy and Cumulus is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class and Scienjoy Holding 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 Scienjoy Holding Corp are associated (or correlated) with Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Scienjoy Holding i.e., Scienjoy Holding and Cumulus Media go up and down completely randomly.

Pair Corralation between Scienjoy Holding and Cumulus Media

Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to generate 1.17 times more return on investment than Cumulus Media. However, Scienjoy Holding is 1.17 times more volatile than Cumulus Media Class. It trades about 0.02 of its potential returns per unit of risk. Cumulus Media Class is currently generating about 0.01 per unit of risk. If you would invest  94.00  in Scienjoy Holding Corp on December 2, 2024 and sell it today you would lose (5.00) from holding Scienjoy Holding Corp or give up 5.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Scienjoy Holding Corp  vs.  Cumulus Media Class

Scienjoy Holding Corp

Risk-Adjusted Performance

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 April 2025.

Cumulus Media Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cumulus Media Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Cumulus Media is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Scienjoy Holding and Cumulus Media

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

The idea behind Scienjoy Holding Corp and Cumulus Media Class 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 CEOs Directory module to screen CEOs from public companies around the world.