Correlation Between 36Kr Holdings and Metalpha Technology
Can any of the company-specific risk be diversified away by investing in both 36Kr Holdings and Metalpha Technology 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 Metalpha Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 36Kr Holdings and Metalpha Technology Holding, you can compare the effects of market volatilities on 36Kr Holdings and Metalpha Technology 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 Metalpha Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36Kr Holdings and Metalpha Technology.
Diversification Opportunities for 36Kr Holdings and Metalpha Technology
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 36Kr and Metalpha is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Metalpha Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalpha Technology 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 Metalpha Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalpha Technology has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Metalpha Technology go up and down completely randomly.
Pair Corralation between 36Kr Holdings and Metalpha Technology
Given the investment horizon of 90 days 36Kr Holdings is expected to generate 3.86 times more return on investment than Metalpha Technology. However, 36Kr Holdings is 3.86 times more volatile than Metalpha Technology Holding. It trades about 0.22 of its potential returns per unit of risk. Metalpha Technology Holding is currently generating about 0.28 per unit of risk. If you would invest 300.00 in 36Kr Holdings on November 3, 2024 and sell it today you would earn a total of 350.00 from holding 36Kr Holdings or generate 116.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
36Kr Holdings vs. Metalpha Technology Holding
Performance |
| Timeline |
| 36Kr Holdings |
| Metalpha Technology |
36Kr Holdings and Metalpha Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36Kr Holdings and Metalpha Technology
The main advantage of trading using opposite 36Kr Holdings and Metalpha Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36Kr Holdings position performs unexpectedly, Metalpha Technology 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 Metalpha Technology will offset losses from the drop in Metalpha Technology's long position.| 36Kr Holdings vs. Yunji Inc | 36Kr Holdings vs. Fangdd Network Group | 36Kr Holdings vs. Huize Holding | 36Kr Holdings vs. MOGU Inc |
| Metalpha Technology vs. Omega Therapeutics | Metalpha Technology vs. Atlas Resources International | Metalpha Technology vs. Industry Source Consulting | Metalpha Technology vs. Metalink |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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