Correlation Between Fangdd Network and Metrospaces
Can any of the company-specific risk be diversified away by investing in both Fangdd Network and Metrospaces 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 Metrospaces 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 Metrospaces, you can compare the effects of market volatilities on Fangdd Network and Metrospaces 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 Metrospaces. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fangdd Network and Metrospaces.
Diversification Opportunities for Fangdd Network and Metrospaces
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fangdd and Metrospaces is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fangdd Network Group and Metrospaces in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrospaces 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 Metrospaces. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrospaces has no effect on the direction of Fangdd Network i.e., Fangdd Network and Metrospaces go up and down completely randomly.
Pair Corralation between Fangdd Network and Metrospaces
Considering the 90-day investment horizon Fangdd Network is expected to generate 217.1 times less return on investment than Metrospaces. But when comparing it to its historical volatility, Fangdd Network Group is 40.08 times less risky than Metrospaces. It trades about 0.04 of its potential returns per unit of risk. Metrospaces is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Metrospaces on October 24, 2024 and sell it today you would earn a total of 0.01 from holding Metrospaces or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fangdd Network Group vs. Metrospaces
Performance |
| Timeline |
| Fangdd Network Group |
| Metrospaces |
Fangdd Network and Metrospaces Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fangdd Network and Metrospaces
The main advantage of trading using opposite Fangdd Network and Metrospaces positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fangdd Network position performs unexpectedly, Metrospaces 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 Metrospaces will offset losses from the drop in Metrospaces' long position.| Fangdd Network vs. Southcorp Capital | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International | Fangdd Network vs. Ohmyhome Limited Ordinary |
| Metrospaces vs. Jammin Java Corp | Metrospaces vs. Mongolia Growth Group | Metrospaces vs. Ke Holdings | Metrospaces vs. Medican Enterprises |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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