Correlation Between Here Media and Zhihu
Can any of the company-specific risk be diversified away by investing in both Here Media and Zhihu 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 Here Media and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Here Media and Zhihu Inc ADR, you can compare the effects of market volatilities on Here Media and Zhihu 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 Here Media with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Here Media and Zhihu.
Diversification Opportunities for Here Media and Zhihu
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Here and Zhihu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Here Media and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR and Here Media 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 Here Media are associated (or correlated) with Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of Here Media i.e., Here Media and Zhihu go up and down completely randomly.
Pair Corralation between Here Media and Zhihu
If you would invest 0.02 in Here Media on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Here Media or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Here Media vs. Zhihu Inc ADR
Performance |
| Timeline |
| Here Media |
| Zhihu Inc ADR |
Here Media and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Here Media and Zhihu
The main advantage of trading using opposite Here Media and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Here Media position performs unexpectedly, Zhihu 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 Zhihu will offset losses from the drop in Zhihu's long position.| Here Media vs. Playtech plc | Here Media vs. BRP Inc | Here Media vs. Orion Office Reit | Here Media vs. Canlan Ice Sports |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |