Correlation Between 907818GF9 and Zhihu
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By analyzing existing cross correlation between UNP 495 15 MAY 53 and Zhihu Inc ADR, you can compare the effects of market volatilities on 907818GF9 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 907818GF9 with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of 907818GF9 and Zhihu.
Diversification Opportunities for 907818GF9 and Zhihu
Modest diversification
The 3 months correlation between 907818GF9 and Zhihu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding UNP 495 15 MAY 53 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 907818GF9 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 UNP 495 15 MAY 53 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 907818GF9 i.e., 907818GF9 and Zhihu go up and down completely randomly.
Pair Corralation between 907818GF9 and Zhihu
Assuming the 90 days trading horizon 907818GF9 is expected to generate 17.78 times less return on investment than Zhihu. But when comparing it to its historical volatility, UNP 495 15 MAY 53 is 4.18 times less risky than Zhihu. It trades about 0.01 of its potential returns per unit of risk. Zhihu Inc ADR is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Zhihu Inc ADR on September 2, 2024 and sell it today you would earn a total of 39.00 from holding Zhihu Inc ADR or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.69% |
| Values | Daily Returns |
UNP 495 15 MAY 53 vs. Zhihu Inc ADR
Performance |
| Timeline |
| UNP 495 15 |
| Zhihu Inc ADR |
907818GF9 and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 907818GF9 and Zhihu
The main advantage of trading using opposite 907818GF9 and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 907818GF9 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.| 907818GF9 vs. RBC Bearings Incorporated | 907818GF9 vs. China Aircraft Leasing | 907818GF9 vs. European Wax Center | 907818GF9 vs. Procter Gamble |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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