Correlation Between DouYu International and Jianpu Technology
Can any of the company-specific risk be diversified away by investing in both DouYu International and Jianpu Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DouYu International and Jianpu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DouYu International Holdings and Jianpu Technology, you can compare the effects of market volatilities on DouYu International and Jianpu Technology 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 DouYu International with a short position of Jianpu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Jianpu Technology.
Diversification Opportunities for DouYu International and Jianpu Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DouYu and Jianpu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Jianpu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jianpu Technology and DouYu International 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 DouYu International Holdings are associated (or correlated) with Jianpu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jianpu Technology has no effect on the direction of DouYu International i.e., DouYu International and Jianpu Technology go up and down completely randomly.
Pair Corralation between DouYu International and Jianpu Technology
If you would invest 711.00 in DouYu International Holdings on January 18, 2024 and sell it today you would earn a total of 70.00 from holding DouYu International Holdings or generate 9.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
DouYu International Holdings vs. Jianpu Technology
Performance |
Timeline |
DouYu International |
Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
DouYu International and Jianpu Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DouYu International and Jianpu Technology
The main advantage of trading using opposite DouYu International and Jianpu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Jianpu Technology 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 Jianpu Technology will offset losses from the drop in Jianpu Technology's long position.DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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