Correlation Between Opera and Fang Holdings
Can any of the company-specific risk be diversified away by investing in both Opera and Fang Holdings 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 Opera and Fang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opera and Fang Holdings, you can compare the effects of market volatilities on Opera and Fang Holdings 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 Opera with a short position of Fang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opera and Fang Holdings.
Diversification Opportunities for Opera and Fang Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Opera and Fang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Opera and Fang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fang Holdings and Opera 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 Opera are associated (or correlated) with Fang Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fang Holdings has no effect on the direction of Opera i.e., Opera and Fang Holdings go up and down completely randomly.
Pair Corralation between Opera and Fang Holdings
If you would invest 1,842 in Opera on November 18, 2024 and sell it today you would earn a total of 344.00 from holding Opera or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Opera vs. Fang Holdings
Performance |
| Timeline |
| Opera |
| Fang Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Opera and Fang Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opera and Fang Holdings
The main advantage of trading using opposite Opera and Fang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opera position performs unexpectedly, Fang Holdings 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 Fang Holdings will offset losses from the drop in Fang Holdings' long position.The idea behind Opera and Fang Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fang Holdings vs. China Finance Online | Fang Holdings vs. Stingray Group | Fang Holdings vs. ManifestSeven Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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