Correlation Between IQIYI and Scienjoy Holding
Can any of the company-specific risk be diversified away by investing in both IQIYI and Scienjoy Holding 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 IQIYI and Scienjoy Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iQIYI Inc and Scienjoy Holding Corp, you can compare the effects of market volatilities on IQIYI and Scienjoy Holding 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 IQIYI with a short position of Scienjoy Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQIYI and Scienjoy Holding.
Diversification Opportunities for IQIYI and Scienjoy Holding
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IQIYI and Scienjoy is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding iQIYI Inc and Scienjoy Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienjoy Holding Corp and IQIYI 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 iQIYI Inc are associated (or correlated) with Scienjoy Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienjoy Holding Corp has no effect on the direction of IQIYI i.e., IQIYI and Scienjoy Holding go up and down completely randomly.
Pair Corralation between IQIYI and Scienjoy Holding
Allowing for the 90-day total investment horizon iQIYI Inc is expected to under-perform the Scienjoy Holding. But the stock apears to be less risky and, when comparing its historical volatility, iQIYI Inc is 1.6 times less risky than Scienjoy Holding. The stock trades about -0.04 of its potential returns per unit of risk. The Scienjoy Holding Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Scienjoy Holding Corp on August 31, 2024 and sell it today you would lose (251.00) from holding Scienjoy Holding Corp or give up 72.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iQIYI Inc vs. Scienjoy Holding Corp
Performance |
| Timeline |
| iQIYI Inc |
| Scienjoy Holding Corp |
IQIYI and Scienjoy Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQIYI and Scienjoy Holding
The main advantage of trading using opposite IQIYI and Scienjoy Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQIYI position performs unexpectedly, Scienjoy Holding 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 Scienjoy Holding will offset losses from the drop in Scienjoy Holding's long position.The idea behind iQIYI Inc and Scienjoy Holding Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Scienjoy Holding vs. Cumulus Media Class | Scienjoy Holding vs. E W Scripps | Scienjoy Holding vs. Beasley Broadcast Group | Scienjoy Holding vs. Gray Television |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |