Correlation Between Zhihu and 693304AT4
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By analyzing existing cross correlation between Zhihu Inc ADR and PECO ENERGY 315, you can compare the effects of market volatilities on Zhihu and 693304AT4 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 693304AT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and 693304AT4.
Diversification Opportunities for Zhihu and 693304AT4
Modest diversification
The 3 months correlation between Zhihu and 693304AT4 is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and PECO ENERGY 315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 315 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 693304AT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 315 has no effect on the direction of Zhihu i.e., Zhihu and 693304AT4 go up and down completely randomly.
Pair Corralation between Zhihu and 693304AT4
Allowing for the 90-day total investment horizon Zhihu Inc ADR is expected to generate 1.68 times more return on investment than 693304AT4. However, Zhihu is 1.68 times more volatile than PECO ENERGY 315. It trades about -0.03 of its potential returns per unit of risk. PECO ENERGY 315 is currently generating about -0.09 per unit of risk. If you would invest 357.00 in Zhihu Inc ADR on November 4, 2024 and sell it today you would lose (6.00) from holding Zhihu Inc ADR or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Zhihu Inc ADR vs. PECO ENERGY 315
Performance |
| Timeline |
| Zhihu Inc ADR |
| PECO ENERGY 315 |
Zhihu and 693304AT4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhihu and 693304AT4
The main advantage of trading using opposite Zhihu and 693304AT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, 693304AT4 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 693304AT4 will offset losses from the drop in 693304AT4's long position.The idea behind Zhihu Inc ADR and PECO ENERGY 315 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.| 693304AT4 vs. China Resources Beer | 693304AT4 vs. Oatly Group AB | 693304AT4 vs. Minerals Technologies | 693304AT4 vs. Morgan Advanced Materials |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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