Correlation Between Emerald Expositions and Fangdd Network
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and Fangdd Network 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 Emerald Expositions and Fangdd Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Expositions Events and Fangdd Network Group, you can compare the effects of market volatilities on Emerald Expositions and Fangdd Network 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 Emerald Expositions with a short position of Fangdd Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Fangdd Network.
Diversification Opportunities for Emerald Expositions and Fangdd Network
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Emerald and Fangdd is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Fangdd Network Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fangdd Network Group and Emerald Expositions 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 Emerald Expositions Events are associated (or correlated) with Fangdd Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fangdd Network Group has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and Fangdd Network go up and down completely randomly.
Pair Corralation between Emerald Expositions and Fangdd Network
Considering the 90-day investment horizon Emerald Expositions Events is expected to generate 0.75 times more return on investment than Fangdd Network. However, Emerald Expositions Events is 1.33 times less risky than Fangdd Network. It trades about -0.04 of its potential returns per unit of risk. Fangdd Network Group is currently generating about -0.5 per unit of risk. If you would invest 384.00 in Emerald Expositions Events on January 7, 2025 and sell it today you would lose (17.00) from holding Emerald Expositions Events or give up 4.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerald Expositions Events vs. Fangdd Network Group
Performance |
| Timeline |
| Emerald Expositions |
| Fangdd Network Group |
Emerald Expositions and Fangdd Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and Fangdd Network
The main advantage of trading using opposite Emerald Expositions and Fangdd Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, Fangdd Network 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 Fangdd Network will offset losses from the drop in Fangdd Network's long position.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Clear Channel Outdoor |
| Fangdd Network vs. Southcorp Capital | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International | Fangdd Network vs. Ohmyhome Limited Ordinary |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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