Correlation Between TuanChe ADR and Zhihu
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and Zhihu 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 TuanChe ADR and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Zhihu Inc ADR, you can compare the effects of market volatilities on TuanChe ADR and Zhihu 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 TuanChe ADR with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Zhihu.
Diversification Opportunities for TuanChe ADR and Zhihu
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TuanChe and Zhihu is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR and TuanChe ADR 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 TuanChe ADR are associated (or correlated) with Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and Zhihu go up and down completely randomly.
Pair Corralation between TuanChe ADR and Zhihu
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Zhihu. In addition to that, TuanChe ADR is 1.57 times more volatile than Zhihu Inc ADR. It trades about -0.05 of its total potential returns per unit of risk. Zhihu Inc ADR is currently generating about 0.0 per unit of volatility. If you would invest 792.00 in Zhihu Inc ADR on December 2, 2024 and sell it today you would lose (281.00) from holding Zhihu Inc ADR or give up 35.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TuanChe ADR vs. Zhihu Inc ADR
Performance |
Timeline |
TuanChe ADR |
Zhihu Inc ADR |
TuanChe ADR and Zhihu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TuanChe ADR and Zhihu
The main advantage of trading using opposite TuanChe ADR and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, Zhihu 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 Zhihu will offset losses from the drop in Zhihu's long position.TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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