Correlation Between Huize Holding and Zhibao Technology
Can any of the company-specific risk be diversified away by investing in both Huize Holding and Zhibao Technology 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 Huize Holding and Zhibao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huize Holding and Zhibao Technology Class, you can compare the effects of market volatilities on Huize Holding and Zhibao Technology 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 Huize Holding with a short position of Zhibao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huize Holding and Zhibao Technology.
Diversification Opportunities for Huize Holding and Zhibao Technology
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huize and Zhibao is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Huize Holding and Zhibao Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhibao Technology Class and Huize Holding 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 Huize Holding are associated (or correlated) with Zhibao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhibao Technology Class has no effect on the direction of Huize Holding i.e., Huize Holding and Zhibao Technology go up and down completely randomly.
Pair Corralation between Huize Holding and Zhibao Technology
Given the investment horizon of 90 days Huize Holding is expected to generate 7.85 times more return on investment than Zhibao Technology. However, Huize Holding is 7.85 times more volatile than Zhibao Technology Class. It trades about 0.04 of its potential returns per unit of risk. Zhibao Technology Class is currently generating about -0.05 per unit of risk. If you would invest 120.00 in Huize Holding on November 9, 2024 and sell it today you would earn a total of 201.00 from holding Huize Holding or generate 167.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 43.41% |
| Values | Daily Returns |
Huize Holding vs. Zhibao Technology Class
Performance |
| Timeline |
| Huize Holding |
| Zhibao Technology Class |
Huize Holding and Zhibao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huize Holding and Zhibao Technology
The main advantage of trading using opposite Huize Holding and Zhibao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huize Holding position performs unexpectedly, Zhibao Technology 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 Zhibao Technology will offset losses from the drop in Zhibao Technology's long position.| Huize Holding vs. CorVel Corp | Huize Holding vs. Erie Indemnity | Huize Holding vs. Crawford Company | Huize Holding vs. eHealth |
| Zhibao Technology vs. Timken Company | Zhibao Technology vs. American Clean Resources | Zhibao Technology vs. Rocky Brands | Zhibao Technology vs. Procter Gamble |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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