Correlation Between DAX Index and KINGDEE INTL
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By analyzing existing cross correlation between DAX Index and KINGDEE INTL SOFTWA, you can compare the effects of market volatilities on DAX Index and KINGDEE INTL 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 DAX Index with a short position of KINGDEE INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and KINGDEE INTL.
Diversification Opportunities for DAX Index and KINGDEE INTL
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and KINGDEE is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and KINGDEE INTL SOFTWA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINGDEE INTL SOFTWA and DAX Index 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 DAX Index are associated (or correlated) with KINGDEE INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINGDEE INTL SOFTWA has no effect on the direction of DAX Index i.e., DAX Index and KINGDEE INTL go up and down completely randomly.
Pair Corralation between DAX Index and KINGDEE INTL
Assuming the 90 days trading horizon DAX Index is expected to under-perform the KINGDEE INTL. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 4.17 times less risky than KINGDEE INTL. The index trades about -0.03 of its potential returns per unit of risk. The KINGDEE INTL SOFTWA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 98.00 in KINGDEE INTL SOFTWA on August 28, 2024 and sell it today you would earn a total of 4.00 from holding KINGDEE INTL SOFTWA or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. KINGDEE INTL SOFTWA
Performance |
| Timeline |
DAX Index and KINGDEE INTL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
KINGDEE INTL SOFTWA
Pair trading matchups for KINGDEE INTL
Pair Trading with DAX Index and KINGDEE INTL
The main advantage of trading using opposite DAX Index and KINGDEE INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, KINGDEE INTL 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 INTL will offset losses from the drop in KINGDEE INTL's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| KINGDEE INTL vs. Salesforce | KINGDEE INTL vs. British American Tobacco | KINGDEE INTL vs. Tencent Music Entertainment | KINGDEE INTL vs. CarsalesCom |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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