Correlation Between Fangdd Network and Appreciate Holdings
Can any of the company-specific risk be diversified away by investing in both Fangdd Network and Appreciate 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 Fangdd Network and Appreciate Holdings 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 Appreciate Holdings, you can compare the effects of market volatilities on Fangdd Network and Appreciate 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 Fangdd Network with a short position of Appreciate Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fangdd Network and Appreciate Holdings.
Diversification Opportunities for Fangdd Network and Appreciate Holdings
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fangdd and Appreciate is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Fangdd Network Group and Appreciate Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appreciate Holdings 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 Appreciate Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appreciate Holdings has no effect on the direction of Fangdd Network i.e., Fangdd Network and Appreciate Holdings go up and down completely randomly.
Pair Corralation between Fangdd Network and Appreciate Holdings
If you would invest 29.00 in Appreciate Holdings on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Appreciate Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fangdd Network Group vs. Appreciate Holdings
Performance |
| Timeline |
| Fangdd Network Group |
| Appreciate Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fangdd Network and Appreciate Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fangdd Network and Appreciate Holdings
The main advantage of trading using opposite Fangdd Network and Appreciate Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fangdd Network position performs unexpectedly, Appreciate 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 Appreciate Holdings will offset losses from the drop in Appreciate Holdings' long position.| Fangdd Network vs. Southcorp Capital | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International | Fangdd Network vs. Ohmyhome Limited Ordinary |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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