Correlation Between PLAYSTUDIOS and Kingdee International
Can any of the company-specific risk be diversified away by investing in both PLAYSTUDIOS 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 PLAYSTUDIOS and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYSTUDIOS A DL 0001 and Kingdee International Software, you can compare the effects of market volatilities on PLAYSTUDIOS 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 PLAYSTUDIOS with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYSTUDIOS and Kingdee International.
Diversification Opportunities for PLAYSTUDIOS and Kingdee International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYSTUDIOS and Kingdee is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and PLAYSTUDIOS 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 PLAYSTUDIOS A DL 0001 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 PLAYSTUDIOS i.e., PLAYSTUDIOS and Kingdee International go up and down completely randomly.
Pair Corralation between PLAYSTUDIOS and Kingdee International
Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to under-perform the Kingdee International. In addition to that, PLAYSTUDIOS is 1.29 times more volatile than Kingdee International Software. It trades about -0.28 of its total potential returns per unit of risk. Kingdee International Software is currently generating about -0.11 per unit of volatility. If you would invest 110.00 in Kingdee International Software on October 19, 2024 and sell it today you would lose (6.00) from holding Kingdee International Software or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYSTUDIOS A DL 0001 vs. Kingdee International Software
Performance |
| Timeline |
| PLAYSTUDIOS A DL |
| Kingdee International |
PLAYSTUDIOS and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYSTUDIOS and Kingdee International
The main advantage of trading using opposite PLAYSTUDIOS and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYSTUDIOS 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.| PLAYSTUDIOS vs. Apollo Investment Corp | PLAYSTUDIOS vs. Scottish Mortgage Investment | PLAYSTUDIOS vs. Platinum Investment Management | PLAYSTUDIOS vs. JLF INVESTMENT |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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