Correlation Between DouYu International and Leafbuyer Technologies
Can any of the company-specific risk be diversified away by investing in both DouYu International and Leafbuyer Technologies 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 Leafbuyer Technologies 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 Leafbuyer Technologies, you can compare the effects of market volatilities on DouYu International and Leafbuyer Technologies 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 Leafbuyer Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Leafbuyer Technologies.
Diversification Opportunities for DouYu International and Leafbuyer Technologies
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between DouYu and Leafbuyer is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Leafbuyer Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafbuyer Technologies 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 Leafbuyer Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafbuyer Technologies has no effect on the direction of DouYu International i.e., DouYu International and Leafbuyer Technologies go up and down completely randomly.
Pair Corralation between DouYu International and Leafbuyer Technologies
Given the investment horizon of 90 days DouYu International Holdings is expected to under-perform the Leafbuyer Technologies. But the stock apears to be less risky and, when comparing its historical volatility, DouYu International Holdings is 8.03 times less risky than Leafbuyer Technologies. The stock trades about -0.11 of its potential returns per unit of risk. The Leafbuyer Technologies is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Leafbuyer Technologies on August 29, 2024 and sell it today you would earn a total of 0.30 from holding Leafbuyer Technologies or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DouYu International Holdings vs. Leafbuyer Technologies
Performance |
| Timeline |
| DouYu International |
| Leafbuyer Technologies |
DouYu International and Leafbuyer Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DouYu International and Leafbuyer Technologies
The main advantage of trading using opposite DouYu International and Leafbuyer Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Leafbuyer Technologies 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 Leafbuyer Technologies will offset losses from the drop in Leafbuyer Technologies' long position.| DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
| Leafbuyer Technologies vs. Meta Platforms | Leafbuyer Technologies vs. Alphabet Inc Class C | Leafbuyer Technologies vs. Twilio Inc | Leafbuyer Technologies 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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