Correlation Between Scienjoy Holding and Color Star
Can any of the company-specific risk be diversified away by investing in both Scienjoy Holding and Color Star 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 Scienjoy Holding and Color Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scienjoy Holding Corp and Color Star Technology, you can compare the effects of market volatilities on Scienjoy Holding and Color Star 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 Scienjoy Holding with a short position of Color Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and Color Star.
Diversification Opportunities for Scienjoy Holding and Color Star
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scienjoy and Color is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and Color Star Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Color Star Technology and Scienjoy Holding 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 Scienjoy Holding Corp are associated (or correlated) with Color Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Color Star Technology has no effect on the direction of Scienjoy Holding i.e., Scienjoy Holding and Color Star go up and down completely randomly.
Pair Corralation between Scienjoy Holding and Color Star
Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to generate 0.55 times more return on investment than Color Star. However, Scienjoy Holding Corp is 1.82 times less risky than Color Star. It trades about 0.13 of its potential returns per unit of risk. Color Star Technology is currently generating about -0.45 per unit of risk. If you would invest 80.00 in Scienjoy Holding Corp on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Scienjoy Holding Corp or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scienjoy Holding Corp vs. Color Star Technology
Performance |
| Timeline |
| Scienjoy Holding Corp |
| Color Star Technology |
Scienjoy Holding and Color Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scienjoy Holding and Color Star
The main advantage of trading using opposite Scienjoy Holding and Color Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy Holding position performs unexpectedly, Color Star 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 Color Star will offset losses from the drop in Color Star's long position.| Scienjoy Holding vs. Cumulus Media Class | Scienjoy Holding vs. E W Scripps | Scienjoy Holding vs. Beasley Broadcast Group | Scienjoy Holding vs. Gray Television |
| Color Star vs. Guild Esports Plc | Color Star vs. New Wave Holdings | Color Star vs. Network Media Group | Color Star vs. Hall of Fame |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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