Correlation Between 67077MAN8 and Zhihu
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By analyzing existing cross correlation between NUTRIEN LTD 4125 and Zhihu Inc ADR, you can compare the effects of market volatilities on 67077MAN8 and Zhihu 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 67077MAN8 with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of 67077MAN8 and Zhihu.
Diversification Opportunities for 67077MAN8 and Zhihu
Very weak diversification
The 3 months correlation between 67077MAN8 and Zhihu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NUTRIEN LTD 4125 and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR and 67077MAN8 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 NUTRIEN LTD 4125 are associated (or correlated) with Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of 67077MAN8 i.e., 67077MAN8 and Zhihu go up and down completely randomly.
Pair Corralation between 67077MAN8 and Zhihu
Assuming the 90 days trading horizon NUTRIEN LTD 4125 is expected to generate 0.27 times more return on investment than Zhihu. However, NUTRIEN LTD 4125 is 3.76 times less risky than Zhihu. It trades about 0.2 of its potential returns per unit of risk. Zhihu Inc ADR is currently generating about 0.04 per unit of risk. If you would invest 8,854 in NUTRIEN LTD 4125 on August 24, 2024 and sell it today you would earn a total of 102.00 from holding NUTRIEN LTD 4125 or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 26.09% |
| Values | Daily Returns |
NUTRIEN LTD 4125 vs. Zhihu Inc ADR
Performance |
| Timeline |
| NUTRIEN LTD 4125 |
| Zhihu Inc ADR |
67077MAN8 and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 67077MAN8 and Zhihu
The main advantage of trading using opposite 67077MAN8 and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 67077MAN8 position performs unexpectedly, Zhihu 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 Zhihu will offset losses from the drop in Zhihu's long position.| 67077MAN8 vs. Zhihu Inc ADR | 67077MAN8 vs. Cadence Design Systems | 67077MAN8 vs. Viemed Healthcare | 67077MAN8 vs. Aquestive Therapeutics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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