Correlation Between Fubotv and PDD Holdings

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

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

Diversification Opportunities for Fubotv and PDD Holdings

0.23

Correlation Coefficient

Fubotv  PDD Holdings

Modest diversification

The 3 months correlation between Fubotv and PDD is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fubotv Inc and PDD Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDD Holdings and Fubotv 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 Fubotv Inc are associated (or correlated) with PDD Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDD Holdings has no effect on the direction of Fubotv i.e., Fubotv and PDD Holdings go up and down completely randomly.

Pair Corralation between Fubotv and PDD Holdings

Given the investment horizon of 90 days Fubotv Inc is expected to under-perform the PDD Holdings. In addition to that, Fubotv is 1.78 times more volatile than PDD Holdings. It trades about -0.01 of its total potential returns per unit of risk. PDD Holdings is currently generating about 0.18 per unit of volatility. If you would invest  11,204  in PDD Holdings on August 4, 2025 and sell it today you would earn a total of  2,283  from holding PDD Holdings or generate 20.38% return on investment over 90 days.

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

Fubotv Inc  vs.  PDD Holdings

Fubotv Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Fubotv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Fubotv is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

PDD Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PDD Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, PDD Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fubotv and PDD Holdings

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

The idea behind Fubotv Inc and PDD 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.