Correlation Between Scienjoy Holding and ADTRAN
Can any of the company-specific risk be diversified away by investing in both Scienjoy Holding and ADTRAN 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 ADTRAN 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 ADTRAN Inc, you can compare the effects of market volatilities on Scienjoy Holding and ADTRAN 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 ADTRAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and ADTRAN.
Diversification Opportunities for Scienjoy Holding and ADTRAN
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scienjoy and ADTRAN is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and ADTRAN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADTRAN Inc 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 ADTRAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADTRAN Inc has no effect on the direction of Scienjoy Holding i.e., Scienjoy Holding and ADTRAN go up and down completely randomly.
Pair Corralation between Scienjoy Holding and ADTRAN
Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to generate 1.54 times more return on investment than ADTRAN. However, Scienjoy Holding is 1.54 times more volatile than ADTRAN Inc. It trades about 0.0 of its potential returns per unit of risk. ADTRAN Inc is currently generating about -0.03 per unit of risk. If you would invest 197.00 in Scienjoy Holding Corp on August 27, 2024 and sell it today you would lose (105.00) from holding Scienjoy Holding Corp or give up 53.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scienjoy Holding Corp vs. ADTRAN Inc
Performance |
| Timeline |
| Scienjoy Holding Corp |
| ADTRAN Inc |
Scienjoy Holding and ADTRAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scienjoy Holding and ADTRAN
The main advantage of trading using opposite Scienjoy Holding and ADTRAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy Holding position performs unexpectedly, ADTRAN 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 ADTRAN will offset losses from the drop in ADTRAN's long position.| Scienjoy Holding vs. ADTRAN Inc | Scienjoy Holding vs. Belden Inc | Scienjoy Holding vs. ADC Therapeutics SA | Scienjoy Holding vs. Comtech Telecommunications Corp |
| ADTRAN vs. Mynaric AG ADR | ADTRAN vs. KVH Industries | ADTRAN vs. Telesat Corp | ADTRAN vs. Digi International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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