Correlation Between DouYu International and Ooma
Can any of the company-specific risk be diversified away by investing in both DouYu International and Ooma 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 Ooma 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 Ooma Inc, you can compare the effects of market volatilities on DouYu International and Ooma 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 Ooma. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Ooma.
Diversification Opportunities for DouYu International and Ooma
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DouYu and Ooma is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Ooma Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ooma Inc 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 Ooma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ooma Inc has no effect on the direction of DouYu International i.e., DouYu International and Ooma go up and down completely randomly.
Pair Corralation between DouYu International and Ooma
Given the investment horizon of 90 days DouYu International is expected to generate 2.61 times less return on investment than Ooma. In addition to that, DouYu International is 2.39 times more volatile than Ooma Inc. It trades about 0.04 of its total potential returns per unit of risk. Ooma Inc is currently generating about 0.28 per unit of volatility. If you would invest 1,059 in Ooma Inc on August 31, 2024 and sell it today you would earn a total of 387.00 from holding Ooma Inc or generate 36.54% 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. Ooma Inc
Performance |
| Timeline |
| DouYu International |
| Ooma Inc |
DouYu International and Ooma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DouYu International and Ooma
The main advantage of trading using opposite DouYu International and Ooma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Ooma 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 Ooma will offset losses from the drop in Ooma's long position.| DouYu International vs. Onfolio Holdings | DouYu International vs. Asset Entities Class | DouYu International vs. IZEA Inc | DouYu International vs. MediaAlpha |
| Ooma vs. KORE Group Holdings | Ooma vs. Consolidated Communications | Ooma vs. Cogent Communications Group | Ooma vs. Liberty Broadband Srs |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |