Correlation Between Lizhi and 36Kr Holdings
Can any of the company-specific risk be diversified away by investing in both Lizhi and 36Kr Holdings 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 Lizhi and 36Kr Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lizhi Inc and 36Kr Holdings, you can compare the effects of market volatilities on Lizhi and 36Kr Holdings 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 Lizhi with a short position of 36Kr Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lizhi and 36Kr Holdings.
Diversification Opportunities for Lizhi and 36Kr Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lizhi and 36Kr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lizhi Inc and 36Kr Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 36Kr Holdings and Lizhi 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 Lizhi Inc are associated (or correlated) with 36Kr Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 36Kr Holdings has no effect on the direction of Lizhi i.e., Lizhi and 36Kr Holdings go up and down completely randomly.
Pair Corralation between Lizhi and 36Kr Holdings
If you would invest 339.00 in 36Kr Holdings on November 18, 2024 and sell it today you would earn a total of 194.00 from holding 36Kr Holdings or generate 57.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lizhi Inc vs. 36Kr Holdings
Performance |
| Timeline |
| Lizhi Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| 36Kr Holdings |
Lizhi and 36Kr Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lizhi and 36Kr Holdings
The main advantage of trading using opposite Lizhi and 36Kr Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lizhi position performs unexpectedly, 36Kr Holdings 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 36Kr Holdings will offset losses from the drop in 36Kr Holdings' long position.The idea behind Lizhi Inc and 36Kr Holdings 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.| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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