Correlation Between 36Kr Holdings and Metalpha Technology

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

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

Diversification Opportunities for 36Kr Holdings and Metalpha Technology

0.44

Correlation Coefficient

36Kr Holdings  Metalpha Technology

Very weak diversification

The 3 months correlation between 36Kr and Metalpha is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Metalpha Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalpha Technology 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 Metalpha Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalpha Technology has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Metalpha Technology go up and down completely randomly.

Pair Corralation between 36Kr Holdings and Metalpha Technology

Given the investment horizon of 90 days 36Kr Holdings is expected to under-perform the Metalpha Technology. In addition to that, 36Kr Holdings is 1.12 times more volatile than Metalpha Technology Holding. It trades about -0.09 of its total potential returns per unit of risk. Metalpha Technology Holding is currently generating about -0.02 per unit of volatility. If you would invest  107.00  in Metalpha Technology Holding on September 2, 2024 and sell it today you would lose (17.00) from holding Metalpha Technology Holding or give up 15.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

36Kr Holdings  vs.  Metalpha Technology Holding

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.

Metalpha Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Metalpha Technology Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Etf's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the Etf traders.

Pair Trading with 36Kr Holdings and Metalpha Technology

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

The idea behind 36Kr Holdings and Metalpha Technology Holding 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.