Correlation Between Jianpu Technology and DouYu International
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and DouYu International 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 Jianpu Technology and DouYu International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and DouYu International Holdings, you can compare the effects of market volatilities on Jianpu Technology and DouYu International 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 Jianpu Technology with a short position of DouYu International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and DouYu International.
Diversification Opportunities for Jianpu Technology and DouYu International
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jianpu and DouYu is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and DouYu International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DouYu International and Jianpu Technology 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 Jianpu Technology are associated (or correlated) with DouYu International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DouYu International has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and DouYu International go up and down completely randomly.
Pair Corralation between Jianpu Technology and DouYu International
If you would invest 789.00 in DouYu International Holdings on January 24, 2024 and sell it today you would earn a total of 50.00 from holding DouYu International Holdings or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jianpu Technology vs. DouYu International Holdings
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| DouYu International |
Jianpu Technology and DouYu International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and DouYu International
The main advantage of trading using opposite Jianpu Technology and DouYu International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, DouYu International 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 DouYu International will offset losses from the drop in DouYu International's long position.| Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings | Jianpu Technology vs. Lexinfintech Holdings |
| DouYu International vs. YY Inc Class | DouYu International vs. Weibo Corp | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Autohome |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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