Correlation Between Fangdd Network and Howard Hughes
Can any of the company-specific risk be diversified away by investing in both Fangdd Network and Howard Hughes 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 Howard Hughes 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 Howard Hughes, you can compare the effects of market volatilities on Fangdd Network and Howard Hughes 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 Howard Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fangdd Network and Howard Hughes.
Diversification Opportunities for Fangdd Network and Howard Hughes
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fangdd and Howard is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fangdd Network Group and Howard Hughes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Howard Hughes 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 Howard Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Howard Hughes has no effect on the direction of Fangdd Network i.e., Fangdd Network and Howard Hughes go up and down completely randomly.
Pair Corralation between Fangdd Network and Howard Hughes
Considering the 90-day investment horizon Fangdd Network Group is expected to generate 10.92 times more return on investment than Howard Hughes. However, Fangdd Network is 10.92 times more volatile than Howard Hughes. It trades about 0.01 of its potential returns per unit of risk. Howard Hughes is currently generating about 0.03 per unit of risk. If you would invest 1,830 in Fangdd Network Group on August 30, 2024 and sell it today you would lose (1,776) from holding Fangdd Network Group or give up 97.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fangdd Network Group vs. Howard Hughes
Performance |
| Timeline |
| Fangdd Network Group |
| Howard Hughes |
Fangdd Network and Howard Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fangdd Network and Howard Hughes
The main advantage of trading using opposite Fangdd Network and Howard Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fangdd Network position performs unexpectedly, Howard Hughes 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 Howard Hughes will offset losses from the drop in Howard Hughes' long position.| Fangdd Network vs. MDJM | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International | Fangdd Network vs. Ohmyhome Limited Ordinary |
| Howard Hughes vs. St Joe Company | Howard Hughes vs. Stratus Properties | Howard Hughes vs. Comstock Holding Companies | Howard Hughes vs. Distoken Acquisition |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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