Correlation Between XFit Brands and Zhihu
Can any of the company-specific risk be diversified away by investing in both XFit Brands and Zhihu 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 XFit Brands and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XFit Brands and Zhihu Inc ADR, you can compare the effects of market volatilities on XFit Brands 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 XFit Brands with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of XFit Brands and Zhihu.
Diversification Opportunities for XFit Brands and Zhihu
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XFit and Zhihu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XFit Brands 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 XFit Brands 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 XFit Brands 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 XFit Brands i.e., XFit Brands and Zhihu go up and down completely randomly.
Pair Corralation between XFit Brands and Zhihu
If you would invest 335.00 in Zhihu Inc ADR on January 5, 2025 and sell it today you would earn a total of 50.00 from holding Zhihu Inc ADR or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.56% |
| Values | Daily Returns |
XFit Brands vs. Zhihu Inc ADR
Performance |
| Timeline |
| XFit Brands |
| Zhihu Inc ADR |
XFit Brands and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XFit Brands and Zhihu
The main advantage of trading using opposite XFit Brands and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XFit Brands 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.| XFit Brands vs. Sensient Technologies | XFit Brands vs. Monster Beverage Corp | XFit Brands vs. Brandywine Realty Trust | XFit Brands vs. The Mosaic |
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.
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