Correlation Between Match and 36Kr Holdings

Can any of the company-specific risk be diversified away by investing in both Match and 36Kr 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 Match and 36Kr Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Match Group and 36Kr Holdings, you can compare the effects of market volatilities on Match and 36Kr 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 Match with a short position of 36Kr Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Match and 36Kr Holdings.

Diversification Opportunities for Match and 36Kr Holdings

0.5

Correlation Coefficient

Match  36Kr Holdings

Very weak diversification

The 3 months correlation between Match and 36Kr is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Match Group and 36Kr Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 36Kr Holdings and Match 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 Match Group are associated (or correlated) with 36Kr Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 36Kr Holdings has no effect on the direction of Match i.e., Match and 36Kr Holdings go up and down completely randomly.

Pair Corralation between Match and 36Kr Holdings

Given the investment horizon of 90 days Match Group is expected to under-perform the 36Kr Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Match Group is 1.89 times less risky than 36Kr Holdings. The stock trades about -0.13 of its potential returns per unit of risk. The 36Kr Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  39.00  in 36Kr Holdings on January 20, 2024 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 Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Match Group  vs.  36Kr Holdings

Match Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Match Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

36Kr Holdings

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Match and 36Kr Holdings

The main advantage of trading using opposite Match and 36Kr Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Match position performs unexpectedly, 36Kr 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 36Kr Holdings will offset losses from the drop in 36Kr Holdings' long position.

The idea behind Match Group and 36Kr Holdings 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.