Correlation Between KENEDIX OFFICE and Haier Smart
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Haier Smart 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 KENEDIX OFFICE and Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and Haier Smart Home, you can compare the effects of market volatilities on KENEDIX OFFICE and Haier Smart 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 KENEDIX OFFICE with a short position of Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Haier Smart.
Diversification Opportunities for KENEDIX OFFICE and Haier Smart
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KENEDIX and Haier is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Haier Smart go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Haier Smart
Assuming the 90 days horizon KENEDIX OFFICE is expected to generate 1.97 times less return on investment than Haier Smart. In addition to that, KENEDIX OFFICE is 1.95 times more volatile than Haier Smart Home. It trades about 0.03 of its total potential returns per unit of risk. Haier Smart Home is currently generating about 0.1 per unit of volatility. If you would invest 175.00 in Haier Smart Home on October 16, 2024 and sell it today you would earn a total of 3.00 from holding Haier Smart Home or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. Haier Smart Home
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Haier Smart Home |
KENEDIX OFFICE and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Haier Smart
The main advantage of trading using opposite KENEDIX OFFICE and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| KENEDIX OFFICE vs. SENECA FOODS A | KENEDIX OFFICE vs. United Natural Foods | KENEDIX OFFICE vs. Ebro Foods SA | KENEDIX OFFICE vs. GWILLI FOOD |
| Haier Smart vs. PLANT VEDA FOODS | Haier Smart vs. Algonquin Power Utilities | Haier Smart vs. Austevoll Seafood ASA | Haier Smart vs. Canadian Utilities 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |