Correlation Between Ziff Davis and ATRenew
Can any of the company-specific risk be diversified away by investing in both Ziff Davis and ATRenew 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 Ziff Davis and ATRenew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ziff Davis and ATRenew Inc DRC, you can compare the effects of market volatilities on Ziff Davis and ATRenew 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 Ziff Davis with a short position of ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziff Davis and ATRenew.
Diversification Opportunities for Ziff Davis and ATRenew
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ziff and ATRenew is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ziff Davis and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC and Ziff Davis 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 Ziff Davis are associated (or correlated) with ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of Ziff Davis i.e., Ziff Davis and ATRenew go up and down completely randomly.
Pair Corralation between Ziff Davis and ATRenew
Allowing for the 90-day total investment horizon Ziff Davis is expected to generate 7.96 times less return on investment than ATRenew. But when comparing it to its historical volatility, Ziff Davis is 4.15 times less risky than ATRenew. It trades about 0.09 of its potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 243.00 in ATRenew Inc DRC on September 13, 2024 and sell it today you would earn a total of 53.50 from holding ATRenew Inc DRC or generate 22.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziff Davis vs. ATRenew Inc DRC
Performance |
| Timeline |
| Ziff Davis |
| ATRenew Inc DRC |
Ziff Davis and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziff Davis and ATRenew
The main advantage of trading using opposite Ziff Davis and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziff Davis position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.| Ziff Davis vs. Interpublic Group of | Ziff Davis vs. Criteo Sa | Ziff Davis vs. WPP PLC ADR | Ziff Davis vs. Integral Ad Science |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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