Correlation Between 36Kr Holdings and Yelp
Can any of the company-specific risk be diversified away by investing in both 36Kr Holdings and Yelp 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 Yelp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 36Kr Holdings and Yelp Inc, you can compare the effects of market volatilities on 36Kr Holdings and Yelp 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 Yelp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36Kr Holdings and Yelp.
Diversification Opportunities for 36Kr Holdings and Yelp
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 36Kr and Yelp is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Yelp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelp Inc 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 Yelp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelp Inc has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Yelp go up and down completely randomly.
Pair Corralation between 36Kr Holdings and Yelp
Given the investment horizon of 90 days 36Kr Holdings is expected to under-perform the Yelp. In addition to that, 36Kr Holdings is 2.62 times more volatile than Yelp Inc. It trades about -0.06 of its total potential returns per unit of risk. Yelp Inc is currently generating about 0.04 per unit of volatility. If you would invest 2,985 in Yelp Inc on October 13, 2024 and sell it today you would earn a total of 858.00 from holding Yelp Inc or generate 28.74% 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. Yelp Inc
Performance |
| Timeline |
| 36Kr Holdings |
| Yelp Inc |
36Kr Holdings and Yelp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36Kr Holdings and Yelp
The main advantage of trading using opposite 36Kr Holdings and Yelp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36Kr Holdings position performs unexpectedly, Yelp 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 Yelp will offset losses from the drop in Yelp'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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |