Correlation Between Fang Holdings and China Finance
Can any of the company-specific risk be diversified away by investing in both Fang Holdings and China Finance 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 Fang Holdings and China Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fang Holdings and China Finance Online, you can compare the effects of market volatilities on Fang Holdings and China Finance 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 Fang Holdings with a short position of China Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fang Holdings and China Finance.
Diversification Opportunities for Fang Holdings and China Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fang and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fang Holdings and China Finance Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Finance Online and Fang 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 Fang Holdings are associated (or correlated) with China Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Finance Online has no effect on the direction of Fang Holdings i.e., Fang Holdings and China Finance go up and down completely randomly.
Pair Corralation between Fang Holdings and China Finance
If you would invest 0.25 in China Finance Online on August 31, 2024 and sell it today you would lose (0.24) from holding China Finance Online or give up 96.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.19% |
| Values | Daily Returns |
Fang Holdings vs. China Finance Online
Performance |
| Timeline |
| Fang Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Finance Online |
Fang Holdings and China Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fang Holdings and China Finance
The main advantage of trading using opposite Fang Holdings and China Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fang Holdings position performs unexpectedly, China Finance 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 China Finance will offset losses from the drop in China Finance's long position.| Fang Holdings vs. China Finance Online | Fang Holdings vs. Stingray Group | Fang Holdings vs. ManifestSeven Holdings |
| China Finance vs. Dmg Blockchain Solutions | China Finance vs. Cathedra Bitcoin | China Finance vs. Galaxy Digital Holdings | China Finance vs. Neptune Digital Assets |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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