Correlation Between Zhihu and Fiserv,

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

By analyzing existing cross correlation between Zhihu Inc ADR and Fiserv,, you can compare the effects of market volatilities on Zhihu and Fiserv, 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 Zhihu with a short position of Fiserv,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and Fiserv,.

Diversification Opportunities for Zhihu and Fiserv,

0.02

Correlation Coefficient

Zhihu  Fiserv,

Significant diversification

The 3 months correlation between Zhihu and Fiserv, is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and Fiserv, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv, and Zhihu 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 Zhihu Inc ADR are associated (or correlated) with Fiserv,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv, has no effect on the direction of Zhihu i.e., Zhihu and Fiserv, go up and down completely randomly.

Pair Corralation between Zhihu and Fiserv,

Allowing for the 90-day total investment horizon Zhihu Inc ADR is expected to generate 2.65 times more return on investment than Fiserv,. However, Zhihu is 2.65 times more volatile than Fiserv,. It trades about 0.16 of its potential returns per unit of risk. Fiserv, is currently generating about -0.14 per unit of risk. If you would invest  334.00  in Zhihu Inc ADR on September 12, 2024 and sell it today you would earn a total of  46.00  from holding Zhihu Inc ADR or generate 13.77% return on investment over 90 days.

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

Zhihu Inc ADR  vs.  Fiserv,

Zhihu Inc ADR

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Zhihu Inc ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical indicators, Zhihu demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Fiserv,

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fiserv, are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Fiserv, demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zhihu and Fiserv,

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

The idea behind Zhihu Inc ADR and Fiserv, 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.