Correlation Between Scienjoy Holding and FingerMotion
Can any of the company-specific risk be diversified away by investing in both Scienjoy Holding and FingerMotion 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 FingerMotion 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 FingerMotion, you can compare the effects of market volatilities on Scienjoy Holding and FingerMotion 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 FingerMotion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and FingerMotion.
Diversification Opportunities for Scienjoy Holding and FingerMotion
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scienjoy and FingerMotion is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and FingerMotion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FingerMotion 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 FingerMotion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FingerMotion has no effect on the direction of Scienjoy Holding i.e., Scienjoy Holding and FingerMotion go up and down completely randomly.
Pair Corralation between Scienjoy Holding and FingerMotion
Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to under-perform the FingerMotion. In addition to that, Scienjoy Holding is 1.32 times more volatile than FingerMotion. It trades about -0.12 of its total potential returns per unit of risk. FingerMotion is currently generating about 0.06 per unit of volatility. If you would invest 112.00 in FingerMotion on October 24, 2024 and sell it today you would earn a total of 4.00 from holding FingerMotion or generate 3.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Scienjoy Holding Corp vs. FingerMotion
Performance |
Timeline |
Scienjoy Holding Corp |
FingerMotion |
Scienjoy Holding and FingerMotion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scienjoy Holding and FingerMotion
The main advantage of trading using opposite Scienjoy Holding and FingerMotion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy Holding position performs unexpectedly, FingerMotion 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 FingerMotion will offset losses from the drop in FingerMotion's long position.Scienjoy Holding vs. Cumulus Media Class | Scienjoy Holding vs. E W Scripps | Scienjoy Holding vs. Beasley Broadcast Group | Scienjoy Holding vs. Gray Television |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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