Correlation Between Masterbeat and Fangdd Network
Can any of the company-specific risk be diversified away by investing in both Masterbeat 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 Masterbeat and Fangdd Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Masterbeat and Fangdd Network Group, you can compare the effects of market volatilities on Masterbeat 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 Masterbeat with a short position of Fangdd Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterbeat and Fangdd Network.
Diversification Opportunities for Masterbeat and Fangdd Network
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Masterbeat and Fangdd is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Masterbeat 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 Masterbeat 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 Masterbeat 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 Masterbeat i.e., Masterbeat and Fangdd Network go up and down completely randomly.
Pair Corralation between Masterbeat and Fangdd Network
Given the investment horizon of 90 days Masterbeat is expected to generate 4.02 times more return on investment than Fangdd Network. However, Masterbeat is 4.02 times more volatile than Fangdd Network Group. It trades about 0.1 of its potential returns per unit of risk. Fangdd Network Group is currently generating about 0.02 per unit of risk. If you would invest 0.05 in Masterbeat on August 31, 2024 and sell it today you would lose (0.05) from holding Masterbeat or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 43.32% |
| Values | Daily Returns |
Masterbeat vs. Fangdd Network Group
Performance |
| Timeline |
| Masterbeat |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fangdd Network Group |
Masterbeat and Fangdd Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterbeat and Fangdd Network
The main advantage of trading using opposite Masterbeat and Fangdd Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterbeat 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.| Masterbeat vs. Fangdd Network Group | Masterbeat vs. Altisource Portfolio Solutions | Masterbeat vs. Medican Enterprises | Masterbeat vs. Jammin Java 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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