Correlation Between DouYu International and Snap
Can any of the company-specific risk be diversified away by investing in both DouYu International and Snap 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 Snap 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 Snap Inc, you can compare the effects of market volatilities on DouYu International and Snap 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 Snap. Check out your portfolio center. Please also check ongoing floating volatility patterns of DouYu International and Snap.
Diversification Opportunities for DouYu International and Snap
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DouYu and Snap is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DouYu International Holdings and Snap Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap Inc 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 Snap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap Inc has no effect on the direction of DouYu International i.e., DouYu International and Snap go up and down completely randomly.
Pair Corralation between DouYu International and Snap
Given the investment horizon of 90 days DouYu International Holdings is expected to generate 1.03 times more return on investment than Snap. However, DouYu International is 1.03 times more volatile than Snap Inc. It trades about 0.12 of its potential returns per unit of risk. Snap Inc is currently generating about 0.12 per unit of risk. If you would invest 745.00 in DouYu International Holdings on April 30, 2025 and sell it today you would earn a total of 168.00 from holding DouYu International Holdings or generate 22.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DouYu International Holdings vs. Snap Inc
Performance |
| Timeline |
| DouYu International |
| Snap Inc |
DouYu International and Snap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DouYu International and Snap
The main advantage of trading using opposite DouYu International and Snap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DouYu International position performs unexpectedly, Snap 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 Snap will offset losses from the drop in Snap's long position.| DouYu International vs. Hello Group | DouYu International vs. Tencent Music Entertainment | DouYu International vs. Zhihu Inc ADR | DouYu International vs. Weibo Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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