Correlation Between Prosafe SE and Kingdee International
Can any of the company-specific risk be diversified away by investing in both Prosafe SE and Kingdee International 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 Prosafe SE and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosafe SE and Kingdee International Software, you can compare the effects of market volatilities on Prosafe SE and Kingdee International 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 Prosafe SE with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosafe SE and Kingdee International.
Diversification Opportunities for Prosafe SE and Kingdee International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prosafe and Kingdee is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Prosafe SE and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and Prosafe SE 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 Prosafe SE are associated (or correlated) with Kingdee International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingdee International has no effect on the direction of Prosafe SE i.e., Prosafe SE and Kingdee International go up and down completely randomly.
Pair Corralation between Prosafe SE and Kingdee International
Assuming the 90 days horizon Prosafe SE is expected to under-perform the Kingdee International. In addition to that, Prosafe SE is 1.87 times more volatile than Kingdee International Software. It trades about -0.04 of its total potential returns per unit of risk. Kingdee International Software is currently generating about -0.02 per unit of volatility. If you would invest 215.00 in Kingdee International Software on October 25, 2024 and sell it today you would lose (105.00) from holding Kingdee International Software or give up 48.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosafe SE vs. Kingdee International Software
Performance |
| Timeline |
| Prosafe SE |
| Kingdee International |
Prosafe SE and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosafe SE and Kingdee International
The main advantage of trading using opposite Prosafe SE and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosafe SE position performs unexpectedly, Kingdee International 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 Kingdee International will offset losses from the drop in Kingdee International's long position.| Prosafe SE vs. Pebblebrook Hotel Trust | Prosafe SE vs. TYSON FOODS A | Prosafe SE vs. PPHE HOTEL GROUP | Prosafe SE vs. Thai Beverage Public |
| Kingdee International vs. FUYO GENERAL LEASE | Kingdee International vs. Nucletron Electronic Aktiengesellschaft | Kingdee International vs. WILLIS LEASE FIN | Kingdee International vs. United Rentals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |