Correlation Between 36Kr Holdings and Spotify Technology
Can any of the company-specific risk be diversified away by investing in both 36Kr Holdings and Spotify 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 Spotify 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 Spotify Technology SA, you can compare the effects of market volatilities on 36Kr Holdings and Spotify 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 Spotify Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36Kr Holdings and Spotify Technology.
Diversification Opportunities for 36Kr Holdings and Spotify Technology
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 36Kr and Spotify is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Spotify Technology SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spotify 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 Spotify Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spotify Technology has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Spotify Technology go up and down completely randomly.
Pair Corralation between 36Kr Holdings and Spotify Technology
Given the investment horizon of 90 days 36Kr Holdings is expected to under-perform the Spotify Technology. In addition to that, 36Kr Holdings is 1.94 times more volatile than Spotify Technology SA. It trades about -0.07 of its total potential returns per unit of risk. Spotify Technology SA is currently generating about 0.16 per unit of volatility. If you would invest 7,973 in Spotify Technology SA on August 31, 2024 and sell it today you would earn a total of 39,551 from holding Spotify Technology SA or generate 496.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
36Kr Holdings vs. Spotify Technology SA
Performance |
| Timeline |
| 36Kr Holdings |
| Spotify Technology |
36Kr Holdings and Spotify Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36Kr Holdings and Spotify Technology
The main advantage of trading using opposite 36Kr Holdings and Spotify Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36Kr Holdings position performs unexpectedly, Spotify 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 Spotify Technology will offset losses from the drop in Spotify Technology's long position.| 36Kr Holdings vs. Onfolio Holdings | 36Kr Holdings vs. Asset Entities Class | 36Kr Holdings vs. IZEA Inc | 36Kr Holdings vs. MediaAlpha |
| Spotify Technology vs. BuzzFeed | Spotify Technology vs. Grab Holdings Limited | Spotify Technology vs. Arqit Quantum Warrants | Spotify Technology vs. HUMANA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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