Correlation Between Ke Holdings and Greentown Management
Can any of the company-specific risk be diversified away by investing in both Ke Holdings and Greentown Management 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 Ke Holdings and Greentown Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ke Holdings and Greentown Management Holdings, you can compare the effects of market volatilities on Ke Holdings and Greentown Management 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 Ke Holdings with a short position of Greentown Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ke Holdings and Greentown Management.
Diversification Opportunities for Ke Holdings and Greentown Management
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BEKE and Greentown is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ke Holdings and Greentown Management Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentown Management and Ke 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 Ke Holdings are associated (or correlated) with Greentown Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greentown Management has no effect on the direction of Ke Holdings i.e., Ke Holdings and Greentown Management go up and down completely randomly.
Pair Corralation between Ke Holdings and Greentown Management
Given the investment horizon of 90 days Ke Holdings is expected to under-perform the Greentown Management. But the stock apears to be less risky and, when comparing its historical volatility, Ke Holdings is 1.4 times less risky than Greentown Management. The stock trades about -0.07 of its potential returns per unit of risk. The Greentown Management Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Greentown Management Holdings on September 3, 2025 and sell it today you would earn a total of 0.00 from holding Greentown Management Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ke Holdings vs. Greentown Management Holdings
Performance |
| Timeline |
| Ke Holdings |
| Greentown Management |
Ke Holdings and Greentown Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ke Holdings and Greentown Management
The main advantage of trading using opposite Ke Holdings and Greentown Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ke Holdings position performs unexpectedly, Greentown Management 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 Greentown Management will offset losses from the drop in Greentown Management's long position.| Ke Holdings vs. Progress Software | Ke Holdings vs. Altair Corp | Ke Holdings vs. Sinclair Broadcast Group | Ke Holdings vs. Unity Software |
| Greentown Management vs. CBRE Group Class | Greentown Management vs. CoStar Group | Greentown Management vs. Ke Holdings | Greentown Management vs. Vantage Towers AG |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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