Correlation Between Zhihu and Iskenderun Demir

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

Diversification Opportunities for Zhihu and Iskenderun Demir

0.0

Correlation Coefficient

Zhihu  Iskenderun Demir

Pay attention - limited upside

The 3 months correlation between Zhihu and Iskenderun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and Iskenderun Demir Ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskenderun Demir 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 Iskenderun Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskenderun Demir has no effect on the direction of Zhihu i.e., Zhihu and Iskenderun Demir go up and down completely randomly.

Pair Corralation between Zhihu and Iskenderun Demir

If you would invest  360.00  in Zhihu Inc ADR on December 20, 2024 and sell it today you would earn a total of  145.00  from holding Zhihu Inc ADR or generate 40.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Zhihu Inc ADR  vs.  Iskenderun Demir Ve

Zhihu Inc ADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zhihu Inc ADR are ranked lower than 11 (%) 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.

Iskenderun Demir

Risk-Adjusted Performance

Very Weak

Over the last 90 days Iskenderun Demir Ve has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Iskenderun Demir is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Zhihu and Iskenderun Demir

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

The idea behind Zhihu Inc ADR and Iskenderun Demir Ve 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.