Correlation Between Perion Network and Lizhi
Can any of the company-specific risk be diversified away by investing in both Perion Network 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 Perion Network and Lizhi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perion Network and Lizhi Inc, you can compare the effects of market volatilities on Perion Network 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 Perion Network with a short position of Lizhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perion Network and Lizhi.
Diversification Opportunities for Perion Network and Lizhi
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perion and Lizhi is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Perion Network and Lizhi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lizhi Inc and Perion Network 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 Perion Network 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 Perion Network i.e., Perion Network and Lizhi go up and down completely randomly.
Pair Corralation between Perion Network and Lizhi
If you would invest 80.00 in Lizhi Inc on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Lizhi Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Perion Network vs. Lizhi Inc
Performance |
| Timeline |
| Perion Network |
| Lizhi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Perion Network and Lizhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perion Network and Lizhi
The main advantage of trading using opposite Perion Network and Lizhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perion Network 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.| Perion Network vs. MediaAlpha | Perion Network vs. Vivid Seats | Perion Network vs. Jiayin Group | Perion Network vs. Hello Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |