Correlation Between PLAY2CHILL and Kingdee International
Can any of the company-specific risk be diversified away by investing in both PLAY2CHILL 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 PLAY2CHILL and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAY2CHILL SA ZY and Kingdee International Software, you can compare the effects of market volatilities on PLAY2CHILL 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 PLAY2CHILL with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAY2CHILL and Kingdee International.
Diversification Opportunities for PLAY2CHILL and Kingdee International
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PLAY2CHILL and Kingdee is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PLAY2CHILL SA ZY and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and PLAY2CHILL 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 PLAY2CHILL SA ZY 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 PLAY2CHILL i.e., PLAY2CHILL and Kingdee International go up and down completely randomly.
Pair Corralation between PLAY2CHILL and Kingdee International
Assuming the 90 days horizon PLAY2CHILL SA ZY is expected to generate 0.48 times more return on investment than Kingdee International. However, PLAY2CHILL SA ZY is 2.1 times less risky than Kingdee International. It trades about 0.33 of its potential returns per unit of risk. Kingdee International Software is currently generating about -0.11 per unit of risk. If you would invest 81.00 in PLAY2CHILL SA ZY on October 19, 2024 and sell it today you would earn a total of 6.00 from holding PLAY2CHILL SA ZY or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAY2CHILL SA ZY vs. Kingdee International Software
Performance |
| Timeline |
| PLAY2CHILL SA ZY |
| Kingdee International |
PLAY2CHILL and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAY2CHILL and Kingdee International
The main advantage of trading using opposite PLAY2CHILL and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAY2CHILL 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.| PLAY2CHILL vs. alstria office REIT AG | PLAY2CHILL vs. CN MODERN DAIRY | PLAY2CHILL vs. Tyson Foods | PLAY2CHILL vs. Infrastrutture Wireless Italiane |
| Kingdee International vs. SIEM OFFSHORE NEW | Kingdee International vs. NURAN WIRELESS INC | Kingdee International vs. PLAYSTUDIOS A DL 0001 | Kingdee International vs. PLAY2CHILL SA ZY |
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..
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