Correlation Between Zhihu and 74340XBU4
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By analyzing existing cross correlation between Zhihu Inc ADR and PLD 325 30 JUN 26, you can compare the effects of market volatilities on Zhihu and 74340XBU4 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 74340XBU4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and 74340XBU4.
Diversification Opportunities for Zhihu and 74340XBU4
Significant diversification
The 3 months correlation between Zhihu and 74340XBU4 is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and PLD 325 30 JUN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLD 325 30 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 74340XBU4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLD 325 30 has no effect on the direction of Zhihu i.e., Zhihu and 74340XBU4 go up and down completely randomly.
Pair Corralation between Zhihu and 74340XBU4
Allowing for the 90-day total investment horizon Zhihu Inc ADR is expected to generate 28.62 times more return on investment than 74340XBU4. However, Zhihu is 28.62 times more volatile than PLD 325 30 JUN 26. It trades about 0.07 of its potential returns per unit of risk. PLD 325 30 JUN 26 is currently generating about 0.01 per unit of risk. If you would invest 330.00 in Zhihu Inc ADR on September 12, 2024 and sell it today you would earn a total of 50.00 from holding Zhihu Inc ADR or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.06% |
| Values | Daily Returns |
Zhihu Inc ADR vs. PLD 325 30 JUN 26
Performance |
| Timeline |
| Zhihu Inc ADR |
| PLD 325 30 |
Zhihu and 74340XBU4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhihu and 74340XBU4
The main advantage of trading using opposite Zhihu and 74340XBU4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, 74340XBU4 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 74340XBU4 will offset losses from the drop in 74340XBU4's long position.The idea behind Zhihu Inc ADR and PLD 325 30 JUN 26 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.| 74340XBU4 vs. AEP TEX INC | 74340XBU4 vs. US BANK NATIONAL | 74340XBU4 vs. Alphabet Inc Class C | 74340XBU4 vs. InMode |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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