Correlation Between DouYu International and Tinybeans Group
Can any of the company-specific risk be diversified away by investing in both DouYu International and Tinybeans Group 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 Tinybeans Group 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 Tinybeans Group Limited, you can compare the effects of market volatilities on DouYu International and Tinybeans Group 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 Tinybeans Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Tinybeans Group.
Diversification Opportunities for DouYu International and Tinybeans Group
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between DouYu and Tinybeans is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Tinybeans Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinybeans Group 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 Tinybeans Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinybeans Group has no effect on the direction of DouYu International i.e., DouYu International and Tinybeans Group go up and down completely randomly.
Pair Corralation between DouYu International and Tinybeans Group
Given the investment horizon of 90 days DouYu International is expected to generate 4.87 times less return on investment than Tinybeans Group. But when comparing it to its historical volatility, DouYu International Holdings is 5.31 times less risky than Tinybeans Group. It trades about 0.04 of its potential returns per unit of risk. Tinybeans Group Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Tinybeans Group Limited on August 30, 2024 and sell it today you would lose (4.50) from holding Tinybeans Group Limited or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DouYu International Holdings vs. Tinybeans Group Limited
Performance |
| Timeline |
| DouYu International |
| Tinybeans Group |
DouYu International and Tinybeans Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DouYu International and Tinybeans Group
The main advantage of trading using opposite DouYu International and Tinybeans Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Tinybeans Group 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 Tinybeans Group will offset losses from the drop in Tinybeans Group's long position.| DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
| Tinybeans Group vs. Meta Platforms | Tinybeans Group vs. Alphabet Inc Class C | Tinybeans Group vs. Twilio Inc | Tinybeans Group 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |