Correlation Between ATOSS SOFTWARE and Kingdee International
Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE 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 ATOSS SOFTWARE and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATOSS SOFTWARE and Kingdee International Software, you can compare the effects of market volatilities on ATOSS SOFTWARE 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 ATOSS SOFTWARE with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and Kingdee International.
Diversification Opportunities for ATOSS SOFTWARE and Kingdee International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATOSS and Kingdee is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and ATOSS SOFTWARE 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 ATOSS SOFTWARE 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 ATOSS SOFTWARE i.e., ATOSS SOFTWARE and Kingdee International go up and down completely randomly.
Pair Corralation between ATOSS SOFTWARE and Kingdee International
Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 29.56 times less return on investment than Kingdee International. But when comparing it to its historical volatility, ATOSS SOFTWARE is 1.54 times less risky than Kingdee International. It trades about 0.02 of its potential returns per unit of risk. Kingdee International Software is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 98.00 in Kingdee International Software on November 4, 2024 and sell it today you would earn a total of 27.00 from holding Kingdee International Software or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATOSS SOFTWARE vs. Kingdee International Software
Performance |
| Timeline |
| ATOSS SOFTWARE |
| Kingdee International |
ATOSS SOFTWARE and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATOSS SOFTWARE and Kingdee International
The main advantage of trading using opposite ATOSS SOFTWARE and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS SOFTWARE 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.| ATOSS SOFTWARE vs. Apple Inc | ATOSS SOFTWARE vs. Apple Inc | ATOSS SOFTWARE vs. Apple Inc | ATOSS SOFTWARE vs. Apple Inc |
| Kingdee International vs. Intuit Inc | Kingdee International vs. Palo Alto Networks | Kingdee International vs. Synopsys | Kingdee International vs. Cadence Design Systems |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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