Correlation Between Haier Smart and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both Haier Smart and KENEDIX OFFICE 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 Haier Smart and KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and KENEDIX OFFICE INV, you can compare the effects of market volatilities on Haier Smart and KENEDIX OFFICE 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 Haier Smart with a short position of KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and KENEDIX OFFICE.
Diversification Opportunities for Haier Smart and KENEDIX OFFICE
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Haier and KENEDIX is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV and Haier Smart 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 Haier Smart Home are associated (or correlated) with KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of Haier Smart i.e., Haier Smart and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between Haier Smart and KENEDIX OFFICE
Assuming the 90 days trading horizon Haier Smart Home is expected to generate 1.46 times more return on investment than KENEDIX OFFICE. However, Haier Smart is 1.46 times more volatile than KENEDIX OFFICE INV. It trades about 0.12 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about -0.03 per unit of risk. If you would invest 103.00 in Haier Smart Home on October 16, 2024 and sell it today you would earn a total of 75.00 from holding Haier Smart Home or generate 72.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. KENEDIX OFFICE INV
Performance |
| Timeline |
| Haier Smart Home |
| KENEDIX OFFICE INV |
Haier Smart and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and KENEDIX OFFICE
The main advantage of trading using opposite Haier Smart and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| Haier Smart vs. PLANT VEDA FOODS | Haier Smart vs. Algonquin Power Utilities | Haier Smart vs. Austevoll Seafood ASA | Haier Smart vs. Canadian Utilities Limited |
| KENEDIX OFFICE vs. SENECA FOODS A | KENEDIX OFFICE vs. United Natural Foods | KENEDIX OFFICE vs. Ebro Foods SA | KENEDIX OFFICE vs. GWILLI FOOD |
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 CEOs Directory module to screen CEOs from public companies around the world.
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