Correlation Between NURAN WIRELESS and Kingdee International
Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS 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 NURAN WIRELESS and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NURAN WIRELESS INC and Kingdee International Software, you can compare the effects of market volatilities on NURAN WIRELESS 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 NURAN WIRELESS with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and Kingdee International.
Diversification Opportunities for NURAN WIRELESS and Kingdee International
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NURAN and Kingdee is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and NURAN WIRELESS 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 NURAN WIRELESS INC 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 NURAN WIRELESS i.e., NURAN WIRELESS and Kingdee International go up and down completely randomly.
Pair Corralation between NURAN WIRELESS and Kingdee International
Assuming the 90 days trading horizon NURAN WIRELESS INC is expected to generate 2.35 times more return on investment than Kingdee International. However, NURAN WIRELESS is 2.35 times more volatile than Kingdee International Software. It trades about -0.06 of its potential returns per unit of risk. Kingdee International Software is currently generating about -0.47 per unit of risk. If you would invest 4.56 in NURAN WIRELESS INC on October 12, 2024 and sell it today you would lose (0.34) from holding NURAN WIRELESS INC or give up 7.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
NURAN WIRELESS INC vs. Kingdee International Software
Performance |
| Timeline |
| NURAN WIRELESS INC |
| Kingdee International |
NURAN WIRELESS and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NURAN WIRELESS and Kingdee International
The main advantage of trading using opposite NURAN WIRELESS and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS 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.| NURAN WIRELESS vs. SLR Investment Corp | NURAN WIRELESS vs. Guangdong Investment Limited | NURAN WIRELESS vs. MidCap Financial Investment | NURAN WIRELESS vs. FIREWEED METALS P |
| Kingdee International vs. Apollo Investment Corp | Kingdee International vs. CITY OFFICE REIT | Kingdee International vs. HK Electric Investments | Kingdee International vs. NURAN WIRELESS INC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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