Correlation Between Zhihu and 09261BAK6
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhihu Inc ADR and BX 62 22 APR 33, you can compare the effects of market volatilities on Zhihu and 09261BAK6 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 09261BAK6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and 09261BAK6.
Diversification Opportunities for Zhihu and 09261BAK6
Modest diversification
The 3 months correlation between Zhihu and 09261BAK6 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and BX 62 22 APR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 09261BAK6 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 09261BAK6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 09261BAK6 has no effect on the direction of Zhihu i.e., Zhihu and 09261BAK6 go up and down completely randomly.
Pair Corralation between Zhihu and 09261BAK6
Allowing for the 90-day total investment horizon Zhihu Inc ADR is expected to under-perform the 09261BAK6. In addition to that, Zhihu is 1.13 times more volatile than BX 62 22 APR 33. It trades about -0.12 of its total potential returns per unit of risk. BX 62 22 APR 33 is currently generating about 0.01 per unit of volatility. If you would invest 10,522 in BX 62 22 APR 33 on October 23, 2024 and sell it today you would earn a total of 8.00 from holding BX 62 22 APR 33 or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.68% |
| Values | Daily Returns |
Zhihu Inc ADR vs. BX 62 22 APR 33
Performance |
| Timeline |
| Zhihu Inc ADR |
| 09261BAK6 |
Zhihu and 09261BAK6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhihu and 09261BAK6
The main advantage of trading using opposite Zhihu and 09261BAK6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, 09261BAK6 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 09261BAK6 will offset losses from the drop in 09261BAK6's long position.The idea behind Zhihu Inc ADR and BX 62 22 APR 33 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.| 09261BAK6 vs. Performance Food Group | 09261BAK6 vs. Zhihu Inc ADR | 09261BAK6 vs. NuRAN Wireless | 09261BAK6 vs. Iridium Communications |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |