Correlation Between Ramsay Générale and Kingdee International
Can any of the company-specific risk be diversified away by investing in both Ramsay Générale 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 Ramsay Générale and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Gnrale de and Kingdee International Software, you can compare the effects of market volatilities on Ramsay Générale 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 Ramsay Générale with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Générale and Kingdee International.
Diversification Opportunities for Ramsay Générale and Kingdee International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ramsay and Kingdee is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Gnrale de and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and Ramsay Générale 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 Ramsay Gnrale de 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 Ramsay Générale i.e., Ramsay Générale and Kingdee International go up and down completely randomly.
Pair Corralation between Ramsay Générale and Kingdee International
Assuming the 90 days horizon Ramsay Gnrale de is expected to generate 0.91 times more return on investment than Kingdee International. However, Ramsay Gnrale de is 1.1 times less risky than Kingdee International. It trades about 0.25 of its potential returns per unit of risk. Kingdee International Software is currently generating about -0.38 per unit of risk. If you would invest 1,150 in Ramsay Gnrale de on October 11, 2024 and sell it today you would earn a total of 110.00 from holding Ramsay Gnrale de or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramsay Gnrale de vs. Kingdee International Software
Performance |
| Timeline |
| Ramsay Gnrale de |
| Kingdee International |
Ramsay Générale and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Générale and Kingdee International
The main advantage of trading using opposite Ramsay Générale and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Générale 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.| Ramsay Générale vs. Gold Road Resources | Ramsay Générale vs. COLUMBIA SPORTSWEAR | Ramsay Générale vs. QUEEN S ROAD | Ramsay Générale vs. PLAYTECH |
| Kingdee International vs. CHINA TONTINE WINES | Kingdee International vs. VIVA WINE GROUP | Kingdee International vs. Aegean Airlines SA | Kingdee International vs. Singapore Airlines Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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