Correlation Between Weibo Corp and Fang Holdings
Can any of the company-specific risk be diversified away by investing in both Weibo Corp 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 Weibo Corp and Fang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and Fang Holdings, you can compare the effects of market volatilities on Weibo Corp 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 Weibo Corp with a short position of Fang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and Fang Holdings.
Diversification Opportunities for Weibo Corp and Fang Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weibo and Fang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and Fang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fang Holdings and Weibo Corp 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 Weibo Corp 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 Weibo Corp i.e., Weibo Corp and Fang Holdings go up and down completely randomly.
Pair Corralation between Weibo Corp and Fang Holdings
If you would invest 851.00 in Weibo Corp on November 18, 2024 and sell it today you would earn a total of 259.00 from holding Weibo Corp or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Weibo Corp vs. Fang Holdings
Performance |
| Timeline |
| Weibo Corp |
| Fang Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Weibo Corp and Fang Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and Fang Holdings
The main advantage of trading using opposite Weibo Corp and Fang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp 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.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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