Correlation Between Zhihu and Maplebear

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

By analyzing existing cross correlation between Zhihu Inc ADR and Maplebear, you can compare the effects of market volatilities on Zhihu and Maplebear 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 Maplebear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhihu and Maplebear.

Diversification Opportunities for Zhihu and Maplebear

0.71

Correlation Coefficient

Zhihu  Maplebear

Poor diversification

The 3 months correlation between Zhihu and Maplebear is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zhihu Inc ADR and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear 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 Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of Zhihu i.e., Zhihu and Maplebear go up and down completely randomly.

Pair Corralation between Zhihu and Maplebear

Allowing for the 90-day total investment horizon Zhihu is expected to generate 1.66 times less return on investment than Maplebear. In addition to that, Zhihu is 1.05 times more volatile than Maplebear. It trades about 0.07 of its total potential returns per unit of risk. Maplebear is currently generating about 0.11 per unit of volatility. If you would invest  3,980  in Maplebear on May 1, 2025 and sell it today you would earn a total of  697.00  from holding Maplebear or generate 17.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Zhihu Inc ADR  vs.  Maplebear

Zhihu Inc ADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Zhihu Inc ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain technical indicators, Zhihu may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Maplebear

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Maplebear unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zhihu and Maplebear

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

The idea behind Zhihu Inc ADR and Maplebear 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.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.