Correlation Between PropertyGuru and DouYu International
Can any of the company-specific risk be diversified away by investing in both PropertyGuru 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 PropertyGuru and DouYu International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PropertyGuru Group and DouYu International Holdings, you can compare the effects of market volatilities on PropertyGuru 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 PropertyGuru with a short position of DouYu International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PropertyGuru and DouYu International.
Diversification Opportunities for PropertyGuru and DouYu International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PropertyGuru and DouYu is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PropertyGuru Group and DouYu International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DouYu International and PropertyGuru 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 PropertyGuru Group 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 PropertyGuru i.e., PropertyGuru and DouYu International go up and down completely randomly.
Pair Corralation between PropertyGuru and DouYu International
Given the investment horizon of 90 days PropertyGuru Group is expected to generate 0.52 times more return on investment than DouYu International. However, PropertyGuru Group is 1.91 times less risky than DouYu International. It trades about 0.03 of its potential returns per unit of risk. DouYu International Holdings is currently generating about 0.02 per unit of risk. If you would invest 510.00 in PropertyGuru Group on August 29, 2024 and sell it today you would earn a total of 155.00 from holding PropertyGuru Group or generate 30.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PropertyGuru Group vs. DouYu International Holdings
Performance |
| Timeline |
| PropertyGuru Group |
| DouYu International |
PropertyGuru and DouYu International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PropertyGuru and DouYu International
The main advantage of trading using opposite PropertyGuru and DouYu International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PropertyGuru 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.| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International Holdings |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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