Correlation Between DouYu International and Vita Mobile
Can any of the company-specific risk be diversified away by investing in both DouYu International and Vita Mobile 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 Vita Mobile 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 Vita Mobile Systems, you can compare the effects of market volatilities on DouYu International and Vita Mobile 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 Vita Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Vita Mobile.
Diversification Opportunities for DouYu International and Vita Mobile
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between DouYu and Vita is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Vita Mobile Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vita Mobile Systems 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 Vita Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vita Mobile Systems has no effect on the direction of DouYu International i.e., DouYu International and Vita Mobile go up and down completely randomly.
Pair Corralation between DouYu International and Vita Mobile
If you would invest 1,014 in DouYu International Holdings on August 29, 2024 and sell it today you would lose (14.00) from holding DouYu International Holdings or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
DouYu International Holdings vs. Vita Mobile Systems
Performance |
| Timeline |
| DouYu International |
| Vita Mobile Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DouYu International and Vita Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DouYu International and Vita Mobile
The main advantage of trading using opposite DouYu International and Vita Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Vita Mobile 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 Vita Mobile will offset losses from the drop in Vita Mobile's long position.| DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
| Vita Mobile vs. DouYu International Holdings | Vita Mobile vs. Tencent Music Entertainment | Vita Mobile vs. Weibo Corp | Vita Mobile vs. PropertyGuru Group |
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
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |