Correlation Between Kennedy Wilson and Fangdd Network
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson 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 Kennedy Wilson and Fangdd Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kennedy Wilson Holdings and Fangdd Network Group, you can compare the effects of market volatilities on Kennedy Wilson 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 Kennedy Wilson with a short position of Fangdd Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and Fangdd Network.
Diversification Opportunities for Kennedy Wilson and Fangdd Network
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kennedy and Fangdd is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings 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 Kennedy Wilson 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 Kennedy Wilson Holdings 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 Kennedy Wilson i.e., Kennedy Wilson and Fangdd Network go up and down completely randomly.
Pair Corralation between Kennedy Wilson and Fangdd Network
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Fangdd Network. But the stock apears to be less risky and, when comparing its historical volatility, Kennedy Wilson Holdings is 9.75 times less risky than Fangdd Network. The stock trades about -0.02 of its potential returns per unit of risk. The Fangdd Network Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,275 in Fangdd Network Group on August 31, 2024 and sell it today you would lose (1,217) from holding Fangdd Network Group or give up 95.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. Fangdd Network Group
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| Fangdd Network Group |
Kennedy Wilson and Fangdd Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and Fangdd Network
The main advantage of trading using opposite Kennedy Wilson and Fangdd Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson 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.| Kennedy Wilson vs. Frp Holdings Ord | Kennedy Wilson vs. Transcontinental Realty Investors | Kennedy Wilson vs. Anywhere Real Estate | Kennedy Wilson vs. Re Max Holding |
| Fangdd Network vs. MDJM | 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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