Correlation Between News Corp and Scienjoy Holding
Can any of the company-specific risk be diversified away by investing in both News Corp 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 News Corp and Scienjoy Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corp A and Scienjoy Holding Corp, you can compare the effects of market volatilities on News Corp 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 News Corp with a short position of Scienjoy Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Scienjoy Holding.
Diversification Opportunities for News Corp and Scienjoy Holding
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between News and Scienjoy is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding News Corp A 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 News Corp 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 News Corp A 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 News Corp i.e., News Corp and Scienjoy Holding go up and down completely randomly.
Pair Corralation between News Corp and Scienjoy Holding
Given the investment horizon of 90 days News Corp A is expected to generate 0.24 times more return on investment than Scienjoy Holding. However, News Corp A is 4.09 times less risky than Scienjoy Holding. It trades about 0.09 of its potential returns per unit of risk. Scienjoy Holding Corp is currently generating about -0.02 per unit of risk. If you would invest 1,599 in News Corp A on November 28, 2024 and sell it today you would earn a total of 1,215 from holding News Corp A or generate 75.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Corp A vs. Scienjoy Holding Corp
Performance |
| Timeline |
| News Corp A |
| Scienjoy Holding Corp |
News Corp and Scienjoy Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Scienjoy Holding
The main advantage of trading using opposite News Corp and Scienjoy Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp 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.| News Corp vs. Marcus | News Corp vs. Liberty Media | News Corp vs. Warner Music Group | News Corp vs. Fox Corp Class |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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