Correlation Between Lizhi and Hanryu Holdings,

Can any of the company-specific risk be diversified away by investing in both Lizhi and Hanryu Holdings, 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 Lizhi and Hanryu Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lizhi Inc and Hanryu Holdings, Common, you can compare the effects of market volatilities on Lizhi and Hanryu Holdings, 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 Lizhi with a short position of Hanryu Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lizhi and Hanryu Holdings,.

Diversification Opportunities for Lizhi and Hanryu Holdings,

0.03

Correlation Coefficient

Lizhi  Hanryu Holdings,

Significant diversification

The 3 months correlation between Lizhi and Hanryu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lizhi Inc and Hanryu Holdings, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanryu Holdings, Common and Lizhi 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 Lizhi Inc are associated (or correlated) with Hanryu Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanryu Holdings, Common has no effect on the direction of Lizhi i.e., Lizhi and Hanryu Holdings, go up and down completely randomly.

Pair Corralation between Lizhi and Hanryu Holdings,

Given the investment horizon of 90 days Lizhi is expected to generate 2.41 times less return on investment than Hanryu Holdings,. But when comparing it to its historical volatility, Lizhi Inc is 2.78 times less risky than Hanryu Holdings,. It trades about 0.1 of its potential returns per unit of risk. Hanryu Holdings, Common is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  22.00  in Hanryu Holdings, Common on September 22, 2024 and sell it today you would earn a total of  6.00  from holding Hanryu Holdings, Common or generate 27.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Lizhi Inc  vs.  Hanryu Holdings, Common

Lizhi Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lizhi Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Lizhi reported solid returns over the last few months and may actually be approaching a breakup point.

Hanryu Holdings, Common

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hanryu Holdings, Common are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Hanryu Holdings, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lizhi and Hanryu Holdings,

The main advantage of trading using opposite Lizhi and Hanryu Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lizhi position performs unexpectedly, Hanryu Holdings, 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 Hanryu Holdings, will offset losses from the drop in Hanryu Holdings,'s long position.

The idea behind Lizhi Inc and Hanryu Holdings, Common 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.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.