Correlation Between Fangdd Network and Digitalbridge
Can any of the company-specific risk be diversified away by investing in both Fangdd Network and Digitalbridge 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 Digitalbridge 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 Digitalbridge Group, you can compare the effects of market volatilities on Fangdd Network and Digitalbridge 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 Digitalbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fangdd Network and Digitalbridge.
Diversification Opportunities for Fangdd Network and Digitalbridge
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fangdd and Digitalbridge is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fangdd Network Group and Digitalbridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digitalbridge Group 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 Digitalbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digitalbridge Group has no effect on the direction of Fangdd Network i.e., Fangdd Network and Digitalbridge go up and down completely randomly.
Pair Corralation between Fangdd Network and Digitalbridge
Considering the 90-day investment horizon Fangdd Network Group is expected to under-perform the Digitalbridge. In addition to that, Fangdd Network is 3.89 times more volatile than Digitalbridge Group. It trades about -0.28 of its total potential returns per unit of risk. Digitalbridge Group is currently generating about -0.03 per unit of volatility. If you would invest 1,341 in Digitalbridge Group on September 2, 2024 and sell it today you would lose (31.00) from holding Digitalbridge Group or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fangdd Network Group vs. Digitalbridge Group
Performance |
| Timeline |
| Fangdd Network Group |
| Digitalbridge Group |
Fangdd Network and Digitalbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fangdd Network and Digitalbridge
The main advantage of trading using opposite Fangdd Network and Digitalbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fangdd Network position performs unexpectedly, Digitalbridge 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 Digitalbridge will offset losses from the drop in Digitalbridge's long position.| Fangdd Network vs. MDJM | Fangdd Network vs. Southcorp Capital | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International |
| Digitalbridge vs. Marcus Millichap | Digitalbridge vs. Jones Lang LaSalle | Digitalbridge vs. CBRE Group Class | Digitalbridge vs. Colliers International Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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