Correlation Between NYSE Composite and Fangdd Network
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Fangdd Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Fangdd Network Group, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Fangdd Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fangdd Network.
Diversification Opportunities for NYSE Composite and Fangdd Network
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Fangdd is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Fangdd Network go up and down completely randomly.
Pair Corralation between NYSE Composite and Fangdd Network
Assuming the 90 days trading horizon NYSE Composite is expected to generate 28.65 times less return on investment than Fangdd Network. But when comparing it to its historical volatility, NYSE Composite is 43.12 times less risky than Fangdd Network. It trades about 0.15 of its potential returns per unit of risk. Fangdd Network Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Fangdd Network Group on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Fangdd Network Group or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Fangdd Network Group
Performance |
| Timeline |
NYSE Composite and Fangdd Network Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fangdd Network Group
Pair trading matchups for Fangdd Network
Pair Trading with NYSE Composite and Fangdd Network
The main advantage of trading using opposite NYSE Composite and Fangdd Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Fangdd Network vs. MDJM | Fangdd Network vs. Southcorp Capital | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |