Correlation Between Zhihu and FREEPORT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhihu Inc ADR and FREEPORT MCMORAN INC 4375, you can compare the effects of market volatilities on Zhihu and FREEPORT 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 FREEPORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and FREEPORT.
Diversification Opportunities for Zhihu and FREEPORT
Pay attention - limited upside
The 3 months correlation between Zhihu and FREEPORT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and FREEPORT MCMORAN INC 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREEPORT MCMORAN INC 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 FREEPORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREEPORT MCMORAN INC has no effect on the direction of Zhihu i.e., Zhihu and FREEPORT go up and down completely randomly.
Pair Corralation between Zhihu and FREEPORT
Allowing for the 90-day total investment horizon Zhihu Inc ADR is expected to generate 6.4 times more return on investment than FREEPORT. However, Zhihu is 6.4 times more volatile than FREEPORT MCMORAN INC 4375. It trades about 0.05 of its potential returns per unit of risk. FREEPORT MCMORAN INC 4375 is currently generating about -0.14 per unit of risk. If you would invest 332.00 in Zhihu Inc ADR on September 25, 2024 and sell it today you would earn a total of 32.00 from holding Zhihu Inc ADR or generate 9.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Zhihu Inc ADR vs. FREEPORT MCMORAN INC 4375
Performance |
Timeline |
Zhihu Inc ADR |
FREEPORT MCMORAN INC |
Zhihu and FREEPORT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhihu and FREEPORT
The main advantage of trading using opposite Zhihu and FREEPORT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, FREEPORT 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 FREEPORT will offset losses from the drop in FREEPORT's long position.The idea behind Zhihu Inc ADR and FREEPORT MCMORAN INC 4375 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.FREEPORT vs. Enel Chile SA | FREEPORT vs. Zhihu Inc ADR | FREEPORT vs. Infosys Ltd ADR | FREEPORT vs. Kaltura |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |