Correlation Between Marcus and 36Kr Holdings

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

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

Diversification Opportunities for Marcus and 36Kr Holdings

-0.76

Correlation Coefficient

Marcus  36Kr Holdings

Pay attention - limited upside

The 3 months correlation between Marcus and 36Kr is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and 36Kr Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 36Kr Holdings and Marcus 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 Marcus 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 Marcus i.e., Marcus and 36Kr Holdings go up and down completely randomly.

Pair Corralation between Marcus and 36Kr Holdings

Considering the 90-day investment horizon Marcus is expected to generate 0.38 times more return on investment than 36Kr Holdings. However, Marcus is 2.64 times less risky than 36Kr Holdings. It trades about 0.05 of its potential returns per unit of risk. 36Kr Holdings is currently generating about -0.07 per unit of risk. If you would invest  1,519  in Marcus on September 2, 2024 and sell it today you would earn a total of  745.00  from holding Marcus or generate 49.05% return on investment over 90 days.

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

Marcus  vs.  36Kr Holdings

Marcus

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Marcus are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, Marcus unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Marcus and 36Kr Holdings

The main advantage of trading using opposite Marcus and 36Kr Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus 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 Marcus 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.