Correlation Between Doubledown Interactive and Zhihu
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive 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 Doubledown Interactive and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Zhihu Inc ADR, you can compare the effects of market volatilities on Doubledown Interactive 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 Doubledown Interactive with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Zhihu.
Diversification Opportunities for Doubledown Interactive and Zhihu
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Doubledown and Zhihu is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co 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 Doubledown Interactive 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 Doubledown Interactive Co 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 Doubledown Interactive i.e., Doubledown Interactive and Zhihu go up and down completely randomly.
Pair Corralation between Doubledown Interactive and Zhihu
Considering the 90-day investment horizon Doubledown Interactive Co is expected to under-perform the Zhihu. But the stock apears to be less risky and, when comparing its historical volatility, Doubledown Interactive Co is 1.18 times less risky than Zhihu. The stock trades about -0.01 of its potential returns per unit of risk. The Zhihu Inc ADR is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Zhihu Inc ADR on August 27, 2024 and sell it today you would lose (1.00) from holding Zhihu Inc ADR or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubledown Interactive Co vs. Zhihu Inc ADR
Performance |
| Timeline |
| Doubledown Interactive |
| Zhihu Inc ADR |
Doubledown Interactive and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and Zhihu
The main advantage of trading using opposite Doubledown Interactive and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive 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.| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |