Correlation Between Zillow and Scienjoy Holding
Can any of the company-specific risk be diversified away by investing in both Zillow and Scienjoy Holding 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 Zillow and Scienjoy Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zillow Group and Scienjoy Holding Corp, you can compare the effects of market volatilities on Zillow and Scienjoy Holding 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 Zillow with a short position of Scienjoy Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zillow and Scienjoy Holding.
Diversification Opportunities for Zillow and Scienjoy Holding
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zillow and Scienjoy is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Zillow Group and Scienjoy Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienjoy Holding Corp and Zillow 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 Zillow Group are associated (or correlated) with Scienjoy Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienjoy Holding Corp has no effect on the direction of Zillow i.e., Zillow and Scienjoy Holding go up and down completely randomly.
Pair Corralation between Zillow and Scienjoy Holding
Allowing for the 90-day total investment horizon Zillow Group is expected to generate 0.76 times more return on investment than Scienjoy Holding. However, Zillow Group is 1.31 times less risky than Scienjoy Holding. It trades about 0.16 of its potential returns per unit of risk. Scienjoy Holding Corp is currently generating about -0.2 per unit of risk. If you would invest 7,296 in Zillow Group on June 9, 2025 and sell it today you would earn a total of 1,182 from holding Zillow Group or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Zillow Group vs. Scienjoy Holding Corp
Performance |
| Timeline |
| Zillow Group |
| Scienjoy Holding Corp |
Zillow and Scienjoy Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zillow and Scienjoy Holding
The main advantage of trading using opposite Zillow and Scienjoy Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zillow position performs unexpectedly, Scienjoy Holding 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 Scienjoy Holding will offset losses from the drop in Scienjoy Holding's long position.The idea behind Zillow Group and Scienjoy Holding Corp 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.| Scienjoy Holding vs. Saga Communications | Scienjoy Holding vs. E W Scripps | Scienjoy Holding vs. Nisun International Enterprise | Scienjoy Holding vs. Wah Fu Education |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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