Correlation Between ATRenew and Ziff Davis
Can any of the company-specific risk be diversified away by investing in both ATRenew and Ziff Davis 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 ATRenew and Ziff Davis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRenew Inc DRC and Ziff Davis, you can compare the effects of market volatilities on ATRenew and Ziff Davis 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 ATRenew with a short position of Ziff Davis. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRenew and Ziff Davis.
Diversification Opportunities for ATRenew and Ziff Davis
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRenew and Ziff is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ATRenew Inc DRC and Ziff Davis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziff Davis and ATRenew 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 ATRenew Inc DRC are associated (or correlated) with Ziff Davis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziff Davis has no effect on the direction of ATRenew i.e., ATRenew and Ziff Davis go up and down completely randomly.
Pair Corralation between ATRenew and Ziff Davis
Given the investment horizon of 90 days ATRenew Inc DRC is expected to generate 3.92 times more return on investment than Ziff Davis. However, ATRenew is 3.92 times more volatile than Ziff Davis. It trades about 0.15 of its potential returns per unit of risk. Ziff Davis is currently generating about -0.01 per unit of risk. If you would invest 256.00 in ATRenew Inc DRC on September 12, 2024 and sell it today you would earn a total of 46.00 from holding ATRenew Inc DRC or generate 17.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRenew Inc DRC vs. Ziff Davis
Performance |
| Timeline |
| ATRenew Inc DRC |
| Ziff Davis |
ATRenew and Ziff Davis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRenew and Ziff Davis
The main advantage of trading using opposite ATRenew and Ziff Davis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRenew position performs unexpectedly, Ziff Davis 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 Ziff Davis will offset losses from the drop in Ziff Davis' long position.The idea behind ATRenew Inc DRC and Ziff Davis 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.| Ziff Davis vs. Interpublic Group of | Ziff Davis vs. Criteo Sa | Ziff Davis vs. WPP PLC ADR | Ziff Davis vs. Integral Ad Science |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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