Correlation Between Scienjoy Holding and CuriosityStream

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

By analyzing existing cross correlation between Scienjoy Holding Corp and CuriosityStream, you can compare the effects of market volatilities on Scienjoy Holding and CuriosityStream 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 Scienjoy Holding with a short position of CuriosityStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and CuriosityStream.

Diversification Opportunities for Scienjoy Holding and CuriosityStream

-0.03

Correlation Coefficient

Scienjoy Holding  CuriosityStream

Good diversification

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

Pair Corralation between Scienjoy Holding and CuriosityStream

Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to under-perform the CuriosityStream. But the stock apears to be less risky and, when comparing its historical volatility, Scienjoy Holding Corp is 12.1 times less risky than CuriosityStream. The stock trades about -0.05 of its potential returns per unit of risk. The CuriosityStream is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3.06  in CuriosityStream on February 26, 2024 and sell it today you would lose (0.24) from holding CuriosityStream or give up 7.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	72.58%
Values	Daily Returns

Scienjoy Holding Corp  vs.  CuriosityStream

Scienjoy Holding Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Scienjoy Holding Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Scienjoy Holding revealed solid returns over the last few months and may actually be approaching a breakup point.

CuriosityStream

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CuriosityStream are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, CuriosityStream showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Scienjoy Holding and CuriosityStream

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

The idea behind Scienjoy Holding Corp and CuriosityStream 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.