Correlation Between Scienjoy Holding and Haoxi Health

Can any of the company-specific risk be diversified away by investing in both Scienjoy Holding and Haoxi Health 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 Haoxi Health 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 Haoxi Health Technology, you can compare the effects of market volatilities on Scienjoy Holding and Haoxi Health 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 Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and Haoxi Health.

Diversification Opportunities for Scienjoy Holding and Haoxi Health

-0.04

Correlation Coefficient

Scienjoy Holding  Haoxi Health

Good diversification

The 3 months correlation between Scienjoy and Haoxi is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Scienjoy Holding i.e., Scienjoy Holding and Haoxi Health go up and down completely randomly.

Pair Corralation between Scienjoy Holding and Haoxi Health

Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to under-perform the Haoxi Health. But the stock apears to be less risky and, when comparing its historical volatility, Scienjoy Holding Corp is 1.36 times less risky than Haoxi Health. The stock trades about -0.12 of its potential returns per unit of risk. The Haoxi Health Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Haoxi Health Technology on October 23, 2024 and sell it today you would earn a total of  3.00  from holding Haoxi Health Technology or generate 27.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Scienjoy Holding Corp  vs.  Haoxi Health Technology

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.

Haoxi Health Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haoxi Health Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Haoxi Health is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Scienjoy Holding and Haoxi Health

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

The idea behind Scienjoy Holding Corp and Haoxi Health Technology 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.