Correlation Between Southcorp Capital and Fangdd Network
Can any of the company-specific risk be diversified away by investing in both Southcorp Capital 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 Southcorp Capital and Fangdd Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southcorp Capital and Fangdd Network Group, you can compare the effects of market volatilities on Southcorp Capital 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 Southcorp Capital with a short position of Fangdd Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southcorp Capital and Fangdd Network.
Diversification Opportunities for Southcorp Capital and Fangdd Network
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Southcorp and Fangdd is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Southcorp Capital 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 Southcorp Capital 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 Southcorp Capital 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 Southcorp Capital i.e., Southcorp Capital and Fangdd Network go up and down completely randomly.
Pair Corralation between Southcorp Capital and Fangdd Network
Given the investment horizon of 90 days Southcorp Capital is expected to generate 7.55 times more return on investment than Fangdd Network. However, Southcorp Capital is 7.55 times more volatile than Fangdd Network Group. It trades about 0.2 of its potential returns per unit of risk. Fangdd Network Group is currently generating about 0.01 per unit of risk. If you would invest 0.30 in Southcorp Capital on August 28, 2024 and sell it today you would earn a total of 0.40 from holding Southcorp Capital or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Southcorp Capital vs. Fangdd Network Group
Performance |
| Timeline |
| Southcorp Capital |
| Fangdd Network Group |
Southcorp Capital and Fangdd Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southcorp Capital and Fangdd Network
The main advantage of trading using opposite Southcorp Capital and Fangdd Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southcorp Capital 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.| Southcorp Capital vs. Fangdd Network Group | Southcorp Capital vs. MDJM | Southcorp Capital vs. Frp Holdings Ord | Southcorp Capital vs. Marcus Millichap |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| 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 | |
| Commodity Directory Find actively traded commodities issued by global exchanges |