Correlation Between 36Kr Holdings and Match

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Can any of the company-specific risk be diversified away by investing in both 36Kr Holdings and Match 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 36Kr Holdings and Match into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 36Kr Holdings and Match Group, you can compare the effects of market volatilities on 36Kr Holdings and Match 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 36Kr Holdings with a short position of Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36Kr Holdings and Match.

Diversification Opportunities for 36Kr Holdings and Match

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between 36Kr and Match is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Match Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Match Group and 36Kr 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 36Kr Holdings are associated (or correlated) with Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Match Group has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Match go up and down completely randomly.

Pair Corralation between 36Kr Holdings and Match

Given the investment horizon of 90 days 36Kr Holdings is expected to generate 2.16 times more return on investment than Match. However, 36Kr Holdings is 2.16 times more volatile than Match Group. It trades about -0.02 of its potential returns per unit of risk. Match Group is currently generating about -0.1 per unit of risk. If you would invest  39.00  in 36Kr Holdings on December 29, 2023 and sell it today you would lose (1.00) from holding 36Kr Holdings or give up 2.56% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

36Kr Holdings  vs.  Match Group

 Performance 
       Timeline  
36Kr Holdings 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days 36Kr Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in April 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Match Group 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Match Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Match is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

36Kr Holdings and Match Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 36Kr Holdings and Match

The main advantage of trading using opposite 36Kr Holdings and Match positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36Kr Holdings position performs unexpectedly, Match 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 Match will offset losses from the drop in Match's long position.
The idea behind 36Kr Holdings and Match Group 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.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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