Correlation Between Fangdd Network and Leju Holdings

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

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

Diversification Opportunities for Fangdd Network and Leju Holdings

0.0

Correlation Coefficient

Fangdd Network  Leju Holdings

Pay attention - limited upside

The 3 months correlation between Fangdd and Leju is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fangdd Network Group and Leju Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leju Holdings Limited and Fangdd Network 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 Fangdd Network Group are associated (or correlated) with Leju Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leju Holdings Limited has no effect on the direction of Fangdd Network i.e., Fangdd Network and Leju Holdings go up and down completely randomly.

Pair Corralation between Fangdd Network and Leju Holdings

If you would invest  0.00  in Leju Holdings Limited on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Leju Holdings Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Fangdd Network Group  vs.  Leju Holdings Limited

Fangdd Network Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fangdd Network Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Leju Holdings Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Leju Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking indicators, Leju Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fangdd Network and Leju Holdings

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

The idea behind Fangdd Network Group and Leju Holdings Limited 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 CEOs Directory module to screen CEOs from public companies around the world.