Correlation Between Kuaishou Technology and DouYu International
Can any of the company-specific risk be diversified away by investing in both Kuaishou Technology and DouYu International 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 Kuaishou Technology and DouYu International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuaishou Technology and DouYu International Holdings, you can compare the effects of market volatilities on Kuaishou Technology and DouYu International 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 Kuaishou Technology with a short position of DouYu International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuaishou Technology and DouYu International.
Diversification Opportunities for Kuaishou Technology and DouYu International
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kuaishou and DouYu is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kuaishou Technology and DouYu International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DouYu International and Kuaishou Technology 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 Kuaishou Technology are associated (or correlated) with DouYu International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DouYu International has no effect on the direction of Kuaishou Technology i.e., Kuaishou Technology and DouYu International go up and down completely randomly.
Pair Corralation between Kuaishou Technology and DouYu International
Assuming the 90 days horizon Kuaishou Technology is expected to generate 3.31 times less return on investment than DouYu International. But when comparing it to its historical volatility, Kuaishou Technology is 1.51 times less risky than DouYu International. It trades about 0.13 of its potential returns per unit of risk. DouYu International Holdings is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,105 in DouYu International Holdings on November 4, 2024 and sell it today you would earn a total of 463.00 from holding DouYu International Holdings or generate 41.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Kuaishou Technology vs. DouYu International Holdings
Performance |
| Timeline |
| Kuaishou Technology |
| DouYu International |
Kuaishou Technology and DouYu International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuaishou Technology and DouYu International
The main advantage of trading using opposite Kuaishou Technology and DouYu International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuaishou Technology position performs unexpectedly, DouYu International 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 DouYu International will offset losses from the drop in DouYu International's long position.| Kuaishou Technology vs. Tencent Holdings | Kuaishou Technology vs. DouYu International Holdings | Kuaishou Technology vs. Tencent Music Entertainment | Kuaishou Technology vs. Weibo Corp |
| DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |