Correlation Between Zhihu and Golden Star
Can any of the company-specific risk be diversified away by investing in both Zhihu and Golden Star 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 Zhihu and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhihu Inc ADR and Golden Star Resource, you can compare the effects of market volatilities on Zhihu and Golden Star 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 Zhihu with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and Golden Star.
Diversification Opportunities for Zhihu and Golden Star
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhihu and Golden is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource and Zhihu 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 Zhihu Inc ADR are associated (or correlated) with Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Resource has no effect on the direction of Zhihu i.e., Zhihu and Golden Star go up and down completely randomly.
Pair Corralation between Zhihu and Golden Star
If you would invest 357.00 in Zhihu Inc ADR on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Zhihu Inc ADR or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhihu Inc ADR vs. Golden Star Resource
Performance |
| Timeline |
| Zhihu Inc ADR |
| Golden Star Resource |
Zhihu and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhihu and Golden Star
The main advantage of trading using opposite Zhihu and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Zhihu vs. Tencent Music Entertainment | Zhihu vs. Weibo Corp | Zhihu vs. DouYu International Holdings | Zhihu vs. Baidu Inc |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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