Correlation Between Fangdd Network and Able View
Can any of the company-specific risk be diversified away by investing in both Fangdd Network and Able View 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 Fangdd Network and Able View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fangdd Network Group and Able View Global, you can compare the effects of market volatilities on Fangdd Network and Able View 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 Fangdd Network with a short position of Able View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fangdd Network and Able View.
Diversification Opportunities for Fangdd Network and Able View
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fangdd and Able is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fangdd Network Group and Able View Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Able View Global and Fangdd Network 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 Fangdd Network Group are associated (or correlated) with Able View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Able View Global has no effect on the direction of Fangdd Network i.e., Fangdd Network and Able View go up and down completely randomly.
Pair Corralation between Fangdd Network and Able View
Considering the 90-day investment horizon Fangdd Network Group is expected to generate 1.32 times more return on investment than Able View. However, Fangdd Network is 1.32 times more volatile than Able View Global. It trades about -0.03 of its potential returns per unit of risk. Able View Global is currently generating about -0.42 per unit of risk. If you would invest 58.00 in Fangdd Network Group on November 29, 2024 and sell it today you would lose (3.50) from holding Fangdd Network Group or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fangdd Network Group vs. Able View Global
Performance |
| Timeline |
| Fangdd Network Group |
| Able View Global |
Fangdd Network and Able View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fangdd Network and Able View
The main advantage of trading using opposite Fangdd Network and Able View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fangdd Network position performs unexpectedly, Able View 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 Able View will offset losses from the drop in Able View's long position.| Fangdd Network vs. Southcorp Capital | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International | Fangdd Network vs. Ohmyhome Limited Ordinary |
| Able View vs. HNI Corp | Able View vs. United Parks Resorts | Able View vs. Hollywood Intermediate | Able View vs. Griffon |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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