Correlation Between Scienjoy Holding and Sea
Can any of the company-specific risk be diversified away by investing in both Scienjoy Holding and Sea 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 Sea 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 Sea, you can compare the effects of market volatilities on Scienjoy Holding and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and Sea.
Diversification Opportunities for Scienjoy Holding and Sea
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Scienjoy and Sea is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Scienjoy Holding i.e., Scienjoy Holding and Sea go up and down completely randomly.
Pair Corralation between Scienjoy Holding and Sea
Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to under-perform the Sea. In addition to that, Scienjoy Holding is 1.8 times more volatile than Sea. It trades about -0.02 of its total potential returns per unit of risk. Sea is currently generating about 0.06 per unit of volatility. If you would invest 6,354 in Sea on August 31, 2024 and sell it today you would earn a total of 5,026 from holding Sea or generate 79.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scienjoy Holding Corp vs. Sea
Performance |
| Timeline |
| Scienjoy Holding Corp |
| Sea |
Scienjoy Holding and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scienjoy Holding and Sea
The main advantage of trading using opposite Scienjoy Holding and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy Holding position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea'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 |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |