Correlation Between Zhihu and 893647BL0
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By analyzing existing cross correlation between Zhihu Inc ADR and TransDigm 55 percent, you can compare the effects of market volatilities on Zhihu and 893647BL0 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 893647BL0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and 893647BL0.
Diversification Opportunities for Zhihu and 893647BL0
Good diversification
The 3 months correlation between Zhihu and 893647BL0 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and TransDigm 55 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransDigm 55 percent 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 893647BL0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransDigm 55 percent has no effect on the direction of Zhihu i.e., Zhihu and 893647BL0 go up and down completely randomly.
Pair Corralation between Zhihu and 893647BL0
Allowing for the 90-day total investment horizon Zhihu Inc ADR is expected to under-perform the 893647BL0. In addition to that, Zhihu is 3.49 times more volatile than TransDigm 55 percent. It trades about -0.11 of its total potential returns per unit of risk. TransDigm 55 percent is currently generating about -0.08 per unit of volatility. If you would invest 9,910 in TransDigm 55 percent on September 5, 2024 and sell it today you would lose (382.00) from holding TransDigm 55 percent or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zhihu Inc ADR vs. TransDigm 55 percent
Performance |
| Timeline |
| Zhihu Inc ADR |
| TransDigm 55 percent |
Zhihu and 893647BL0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhihu and 893647BL0
The main advantage of trading using opposite Zhihu and 893647BL0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhihu position performs unexpectedly, 893647BL0 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 893647BL0 will offset losses from the drop in 893647BL0's long position.The idea behind Zhihu Inc ADR and TransDigm 55 percent 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.| 893647BL0 vs. Getty Images Holdings | 893647BL0 vs. Cumberland Pharmaceuticals | 893647BL0 vs. Zhihu Inc ADR | 893647BL0 vs. PennantPark Floating Rate |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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