Correlation Between Leju Holdings and Fangdd Network
Can any of the company-specific risk be diversified away by investing in both Leju Holdings 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 Leju Holdings and Fangdd Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leju Holdings Limited and Fangdd Network Group, you can compare the effects of market volatilities on Leju Holdings 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 Leju Holdings with a short position of Fangdd Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leju Holdings and Fangdd Network.
Diversification Opportunities for Leju Holdings and Fangdd Network
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leju and Fangdd is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Leju Holdings Limited 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 Leju 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 Leju Holdings Limited 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 Leju Holdings i.e., Leju Holdings and Fangdd Network go up and down completely randomly.
Pair Corralation between Leju Holdings and Fangdd Network
If you would invest 207.00 in Leju Holdings Limited on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Leju Holdings Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Leju Holdings Limited vs. Fangdd Network Group
Performance |
| Timeline |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fangdd Network Group |
Leju Holdings and Fangdd Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leju Holdings and Fangdd Network
The main advantage of trading using opposite Leju Holdings and Fangdd Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leju Holdings 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.| Leju Holdings vs. Ucommune International | Leju Holdings vs. Fangdd Network Group | Leju Holdings vs. Jammin Java Corp | Leju Holdings vs. Avalon GloboCare Corp |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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