Correlation Between 36Kr Holdings and Alphabet
Can any of the company-specific risk be diversified away by investing in both 36Kr Holdings and Alphabet 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 36Kr Holdings and Alphabet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 36Kr Holdings and Alphabet Inc Class C, you can compare the effects of market volatilities on 36Kr Holdings and Alphabet 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 36Kr Holdings with a short position of Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36Kr Holdings and Alphabet.
Diversification Opportunities for 36Kr Holdings and Alphabet
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 36Kr and Alphabet is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Alphabet Inc Class C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Class C and 36Kr Holdings 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 36Kr Holdings are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Class C has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Alphabet go up and down completely randomly.
Pair Corralation between 36Kr Holdings and Alphabet
Given the investment horizon of 90 days 36Kr Holdings is expected to under-perform the Alphabet. In addition to that, 36Kr Holdings is 3.77 times more volatile than Alphabet Inc Class C. It trades about -0.12 of its total potential returns per unit of risk. Alphabet Inc Class C is currently generating about -0.02 per unit of volatility. If you would invest 17,758 in Alphabet Inc Class C on August 25, 2024 and sell it today you would lose (1,101) from holding Alphabet Inc Class C or give up 6.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
36Kr Holdings vs. Alphabet Inc Class C
Performance |
| Timeline |
| 36Kr Holdings |
| Alphabet Class C |
36Kr Holdings and Alphabet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36Kr Holdings and Alphabet
The main advantage of trading using opposite 36Kr Holdings and Alphabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36Kr Holdings position performs unexpectedly, Alphabet 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 Alphabet will offset losses from the drop in Alphabet's long position.| 36Kr Holdings vs. Yunji Inc | 36Kr Holdings vs. Fangdd Network Group | 36Kr Holdings vs. Huize Holding | 36Kr Holdings vs. MOGU Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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