Correlation Between Zhihu and 06368EDC3
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By analyzing existing cross correlation between Zhihu Inc ADR and BANK OF MONTREAL, you can compare the effects of market volatilities on Zhihu and 06368EDC3 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 06368EDC3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and 06368EDC3.
Diversification Opportunities for Zhihu and 06368EDC3
Good diversification
The 3 months correlation between Zhihu and 06368EDC3 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and BANK OF MONTREAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OF MONTREAL 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 06368EDC3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK OF MONTREAL has no effect on the direction of Zhihu i.e., Zhihu and 06368EDC3 go up and down completely randomly.
Pair Corralation between Zhihu and 06368EDC3
Allowing for the 90-day total investment horizon Zhihu Inc ADR is expected to under-perform the 06368EDC3. In addition to that, Zhihu is 17.28 times more volatile than BANK OF MONTREAL. It trades about -0.02 of its total potential returns per unit of risk. BANK OF MONTREAL is currently generating about 0.06 per unit of volatility. If you would invest 8,955 in BANK OF MONTREAL on September 12, 2024 and sell it today you would earn a total of 445.00 from holding BANK OF MONTREAL or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.86% |
| Values | Daily Returns |
Zhihu Inc ADR vs. BANK OF MONTREAL
Performance |
| Timeline |
| Zhihu Inc ADR |
| BANK OF MONTREAL |
Zhihu and 06368EDC3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhihu and 06368EDC3
The main advantage of trading using opposite Zhihu and 06368EDC3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, 06368EDC3 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 06368EDC3 will offset losses from the drop in 06368EDC3's long position.| Zhihu vs. Twilio Inc | Zhihu vs. Meta Platforms | Zhihu vs. Alphabet Inc Class C | Zhihu vs. Alphabet Inc Class A |
| 06368EDC3 vs. Ihuman Inc | 06368EDC3 vs. Nexstar Broadcasting Group | 06368EDC3 vs. Zhihu Inc ADR | 06368EDC3 vs. Mesa Air Group |
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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