Correlation Between 36Kr Holdings and Zhihu
Can any of the company-specific risk be diversified away by investing in both 36Kr Holdings 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 36Kr Holdings and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 36Kr Holdings and Zhihu Inc ADR, you can compare the effects of market volatilities on 36Kr Holdings 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 36Kr Holdings with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36Kr Holdings and Zhihu.
Diversification Opportunities for 36Kr Holdings and Zhihu
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 36Kr and Zhihu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings 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 36Kr Holdings 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 36Kr Holdings 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 36Kr Holdings i.e., 36Kr Holdings and Zhihu go up and down completely randomly.
Pair Corralation between 36Kr Holdings and Zhihu
Given the investment horizon of 90 days 36Kr Holdings is expected to under-perform the Zhihu. In addition to that, 36Kr Holdings is 1.06 times more volatile than Zhihu Inc ADR. It trades about -0.37 of its total potential returns per unit of risk. Zhihu Inc ADR is currently generating about 0.01 per unit of volatility. If you would invest 369.00 in Zhihu Inc ADR on August 28, 2024 and sell it today you would lose (1.00) from holding Zhihu Inc ADR or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
36Kr Holdings vs. Zhihu Inc ADR
Performance |
| Timeline |
| 36Kr Holdings |
| Zhihu Inc ADR |
36Kr Holdings and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36Kr Holdings and Zhihu
The main advantage of trading using opposite 36Kr Holdings and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36Kr Holdings 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.| 36Kr Holdings vs. Yunji Inc | 36Kr Holdings vs. Fangdd Network Group | 36Kr Holdings vs. Huize Holding | 36Kr Holdings vs. MOGU 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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