Correlation Between Zillow Group and Fang Holdings
Can any of the company-specific risk be diversified away by investing in both Zillow Group 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 Zillow Group and Fang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zillow Group Class and Fang Holdings, you can compare the effects of market volatilities on Zillow Group 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 Zillow Group with a short position of Fang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zillow Group and Fang Holdings.
Diversification Opportunities for Zillow Group and Fang Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zillow and Fang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zillow Group Class and Fang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fang Holdings and Zillow Group 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 Zillow Group Class 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 Zillow Group i.e., Zillow Group and Fang Holdings go up and down completely randomly.
Pair Corralation between Zillow Group and Fang Holdings
If you would invest 6,632 in Zillow Group Class on August 26, 2024 and sell it today you would earn a total of 1,745 from holding Zillow Group Class or generate 26.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
Zillow Group Class vs. Fang Holdings
Performance |
| Timeline |
| Zillow Group Class |
| Fang Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zillow Group and Fang Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zillow Group and Fang Holdings
The main advantage of trading using opposite Zillow Group and Fang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zillow Group 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.| Zillow Group vs. Pinterest | Zillow Group vs. Snap Inc | Zillow Group vs. Spotify Technology SA | Zillow Group vs. Twilio Inc |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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