Correlation Between Playstudios and Lizhi
Can any of the company-specific risk be diversified away by investing in both Playstudios and Lizhi 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 Playstudios and Lizhi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playstudios and Lizhi Inc, you can compare the effects of market volatilities on Playstudios and Lizhi 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 Playstudios with a short position of Lizhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playstudios and Lizhi.
Diversification Opportunities for Playstudios and Lizhi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Playstudios and Lizhi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Playstudios and Lizhi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lizhi Inc and Playstudios 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 Playstudios are associated (or correlated) with Lizhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lizhi Inc has no effect on the direction of Playstudios i.e., Playstudios and Lizhi go up and down completely randomly.
Pair Corralation between Playstudios and Lizhi
Given the investment horizon of 90 days Playstudios is expected to under-perform the Lizhi. But the stock apears to be less risky and, when comparing its historical volatility, Playstudios is 1.39 times less risky than Lizhi. The stock trades about -0.19 of its potential returns per unit of risk. The Lizhi Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Lizhi Inc on September 10, 2025 and sell it today you would earn a total of 210.00 from holding Lizhi Inc or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Playstudios vs. Lizhi Inc
Performance |
| Timeline |
| Playstudios |
| Lizhi Inc |
Playstudios and Lizhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playstudios and Lizhi
The main advantage of trading using opposite Playstudios and Lizhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playstudios position performs unexpectedly, Lizhi 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 Lizhi will offset losses from the drop in Lizhi's long position.| Playstudios vs. Skillz Platform | Playstudios vs. Roadzen | Playstudios vs. Amtech Systems | Playstudios vs. MagnaChip Semiconductor |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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