Correlation Between DouYu International and Facebook
Can any of the company-specific risk be diversified away by investing in both DouYu International and Facebook 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 DouYu International and Facebook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DouYu International Holdings and Facebook, you can compare the effects of market volatilities on DouYu International and Facebook 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 DouYu International with a short position of Facebook. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Facebook.
Diversification Opportunities for DouYu International and Facebook
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DouYu and Facebook is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Facebook in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Facebook and DouYu International 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 DouYu International Holdings are associated (or correlated) with Facebook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Facebook has no effect on the direction of DouYu International i.e., DouYu International and Facebook go up and down completely randomly.
Pair Corralation between DouYu International and Facebook
If you would invest (100.00) in Facebook on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Facebook or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
DouYu International Holdings vs. Facebook
Performance |
| Timeline |
| DouYu International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DouYu International and Facebook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DouYu International and Facebook
The main advantage of trading using opposite DouYu International and Facebook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Facebook 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 Facebook will offset losses from the drop in Facebook's long position.| DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
| Facebook vs. Meta Platforms | Facebook vs. Alphabet Inc Class A | Facebook vs. Twilio Inc | Facebook vs. Snap 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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