Correlation Between Digital Ally and 36Kr Holdings
Can any of the company-specific risk be diversified away by investing in both Digital Ally and 36Kr Holdings 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 Digital Ally and 36Kr Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Ally and 36Kr Holdings, you can compare the effects of market volatilities on Digital Ally and 36Kr Holdings 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 Digital Ally with a short position of 36Kr Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Ally and 36Kr Holdings.
Diversification Opportunities for Digital Ally and 36Kr Holdings
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digital and 36Kr is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Digital Ally and 36Kr Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 36Kr Holdings and Digital Ally 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 Digital Ally are associated (or correlated) with 36Kr Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 36Kr Holdings has no effect on the direction of Digital Ally i.e., Digital Ally and 36Kr Holdings go up and down completely randomly.
Pair Corralation between Digital Ally and 36Kr Holdings
Given the investment horizon of 90 days Digital Ally is expected to under-perform the 36Kr Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Digital Ally is 2.29 times less risky than 36Kr Holdings. The stock trades about -0.56 of its potential returns per unit of risk. The 36Kr Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 339.00 in 36Kr Holdings on November 18, 2024 and sell it today you would earn a total of 194.00 from holding 36Kr Holdings or generate 57.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Ally vs. 36Kr Holdings
Performance |
| Timeline |
| Digital Ally |
| 36Kr Holdings |
Digital Ally and 36Kr Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Ally and 36Kr Holdings
The main advantage of trading using opposite Digital Ally and 36Kr Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Ally position performs unexpectedly, 36Kr Holdings 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 36Kr Holdings will offset losses from the drop in 36Kr Holdings' long position.| Digital Ally vs. Zedge Inc | Digital Ally vs. 36Kr Holdings | Digital Ally vs. MediaAlpha | Digital Ally vs. Vivid Seats |
| 36Kr Holdings vs. Yunji Inc | 36Kr Holdings vs. Fangdd Network Group | 36Kr Holdings vs. Huize Holding | 36Kr Holdings vs. MOGU Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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