Correlation Between 36Kr Holdings and WPP PLC
Can any of the company-specific risk be diversified away by investing in both 36Kr Holdings and WPP PLC 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 WPP PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 36Kr Holdings and WPP PLC ADR, you can compare the effects of market volatilities on 36Kr Holdings and WPP PLC 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 WPP PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36Kr Holdings and WPP PLC.
Diversification Opportunities for 36Kr Holdings and WPP PLC
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 36Kr and WPP is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding 36Kr Holdings and WPP PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WPP PLC ADR 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 WPP PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WPP PLC ADR has no effect on the direction of 36Kr Holdings i.e., 36Kr Holdings and WPP PLC go up and down completely randomly.
Pair Corralation between 36Kr Holdings and WPP PLC
Given the investment horizon of 90 days 36Kr Holdings is expected to generate 7.34 times more return on investment than WPP PLC. However, 36Kr Holdings is 7.34 times more volatile than WPP PLC ADR. It trades about 0.09 of its potential returns per unit of risk. WPP PLC ADR is currently generating about -0.19 per unit of risk. If you would invest 330.00 in 36Kr Holdings on December 2, 2024 and sell it today you would earn a total of 121.00 from holding 36Kr Holdings or generate 36.67% 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. WPP PLC ADR
Performance |
Timeline |
36Kr Holdings |
WPP PLC ADR |
36Kr Holdings and WPP PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 36Kr Holdings and WPP PLC
The main advantage of trading using opposite 36Kr Holdings and WPP PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36Kr Holdings position performs unexpectedly, WPP PLC 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 WPP PLC will offset losses from the drop in WPP PLC's long position.36Kr Holdings vs. Yunji Inc | 36Kr Holdings vs. Fangdd Network Group | 36Kr Holdings vs. Huize Holding | 36Kr Holdings vs. MOGU Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |