Correlation Between Zhihu and Micromobility
Can any of the company-specific risk be diversified away by investing in both Zhihu and Micromobility 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 Micromobility 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 Micromobility, you can compare the effects of market volatilities on Zhihu and Micromobility 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 Micromobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and Micromobility.
Diversification Opportunities for Zhihu and Micromobility
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhihu and Micromobility is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and Micromobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micromobility 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 Micromobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micromobility has no effect on the direction of Zhihu i.e., Zhihu and Micromobility go up and down completely randomly.
Pair Corralation between Zhihu and Micromobility
If you would invest 397.00 in Zhihu Inc ADR on September 3, 2024 and sell it today you would lose (38.00) from holding Zhihu Inc ADR or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Zhihu Inc ADR vs. Micromobility
Performance |
| Timeline |
| Zhihu Inc ADR |
| Micromobility |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zhihu and Micromobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhihu and Micromobility
The main advantage of trading using opposite Zhihu and Micromobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, Micromobility 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 Micromobility will offset losses from the drop in Micromobility's long position.The idea behind Zhihu Inc ADR and Micromobility pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Micromobility vs. Zhihu Inc ADR | Micromobility vs. Visteon Corp | Micromobility vs. Cadence Design Systems | Micromobility vs. BorgWarner |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |