Correlation Between Onfolio Holdings and Lizhi
Can any of the company-specific risk be diversified away by investing in both Onfolio Holdings and Lizhi 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 Onfolio Holdings and Lizhi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onfolio Holdings and Lizhi Inc, you can compare the effects of market volatilities on Onfolio Holdings and Lizhi 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 Onfolio Holdings with a short position of Lizhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onfolio Holdings and Lizhi.
Diversification Opportunities for Onfolio Holdings and Lizhi
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Onfolio and Lizhi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Onfolio Holdings and Lizhi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lizhi Inc and Onfolio 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 Onfolio Holdings are associated (or correlated) with Lizhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lizhi Inc has no effect on the direction of Onfolio Holdings i.e., Onfolio Holdings and Lizhi go up and down completely randomly.
Pair Corralation between Onfolio Holdings and Lizhi
Given the investment horizon of 90 days Onfolio Holdings is expected to generate 1.08 times less return on investment than Lizhi. In addition to that, Onfolio Holdings is 1.11 times more volatile than Lizhi Inc. It trades about 0.03 of its total potential returns per unit of risk. Lizhi Inc is currently generating about 0.03 per unit of volatility. If you would invest 77.00 in Lizhi Inc on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Lizhi Inc or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Onfolio Holdings vs. Lizhi Inc
Performance |
| Timeline |
| Onfolio Holdings |
| Lizhi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Onfolio Holdings and Lizhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onfolio Holdings and Lizhi
The main advantage of trading using opposite Onfolio Holdings and Lizhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onfolio Holdings position performs unexpectedly, Lizhi 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 Lizhi will offset losses from the drop in Lizhi's long position.| Onfolio Holdings vs. Trivago NV | Onfolio Holdings vs. Cheetah Mobile | Onfolio Holdings vs. Comscore | Onfolio Holdings vs. Arena Group Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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