Correlation Between 36Kr Holdings and Upexi

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

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

Diversification Opportunities for 36Kr Holdings and Upexi

-0.31

Correlation Coefficient

36Kr Holdings  Upexi

Very good diversification

The 3 months correlation between 36Kr and Upexi is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and Upexi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upexi Inc 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 Upexi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upexi Inc has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and Upexi go up and down completely randomly.

Pair Corralation between 36Kr Holdings and Upexi

Given the investment horizon of 90 days 36Kr Holdings is expected to generate 2.02 times more return on investment than Upexi. However, 36Kr Holdings is 2.02 times more volatile than Upexi Inc. It trades about 0.09 of its potential returns per unit of risk. Upexi Inc is currently generating about -0.02 per unit of risk. If you would invest  305.00  in 36Kr Holdings on November 29, 2024 and sell it today you would earn a total of  98.00  from holding 36Kr Holdings or generate 32.13% return on investment over 90 days.

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

36Kr Holdings  vs.  Upexi Inc

36Kr Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in 36Kr Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively sluggish forward-looking signals, 36Kr Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Upexi Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with 36Kr Holdings and Upexi

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

The idea behind 36Kr Holdings and Upexi Inc 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.