Correlation Between 36Kr Holdings and Liberty Tri

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

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

Diversification Opportunities for 36Kr Holdings and Liberty Tri

-0.56

Correlation Coefficient

36Kr Holdings  Liberty Tri

Excellent diversification

The 3 months correlation between 36Kr and Liberty is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Liberty Tri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Tri 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 Liberty Tri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Tri has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Liberty Tri go up and down completely randomly.

Pair Corralation between 36Kr Holdings and Liberty Tri

If you would invest  76.00  in Liberty Tri on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Liberty Tri or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

36Kr Holdings  vs.  Liberty Tri

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 sluggish performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Liberty Tri

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Liberty Tri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Liberty Tri is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 36Kr Holdings and Liberty Tri

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

The idea behind 36Kr Holdings and Liberty Tri 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.