Correlation Between Kingdee International and 10X GENOMICS
Can any of the company-specific risk be diversified away by investing in both Kingdee International and 10X GENOMICS 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 Kingdee International and 10X GENOMICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingdee International Software and 10X GENOMICS DL, you can compare the effects of market volatilities on Kingdee International and 10X GENOMICS 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 Kingdee International with a short position of 10X GENOMICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and 10X GENOMICS.
Diversification Opportunities for Kingdee International and 10X GENOMICS
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kingdee and 10X is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and 10X GENOMICS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X GENOMICS DL and Kingdee International 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 Kingdee International Software are associated (or correlated) with 10X GENOMICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X GENOMICS DL has no effect on the direction of Kingdee International i.e., Kingdee International and 10X GENOMICS go up and down completely randomly.
Pair Corralation between Kingdee International and 10X GENOMICS
Assuming the 90 days trading horizon Kingdee International Software is expected to generate 0.48 times more return on investment than 10X GENOMICS. However, Kingdee International Software is 2.1 times less risky than 10X GENOMICS. It trades about 0.39 of its potential returns per unit of risk. 10X GENOMICS DL is currently generating about 0.1 per unit of risk. If you would invest 99.00 in Kingdee International Software on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Kingdee International Software or generate 26.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingdee International Software vs. 10X GENOMICS DL
Performance |
| Timeline |
| Kingdee International |
| 10X GENOMICS DL |
Kingdee International and 10X GENOMICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and 10X GENOMICS
The main advantage of trading using opposite Kingdee International and 10X GENOMICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, 10X GENOMICS 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 10X GENOMICS will offset losses from the drop in 10X GENOMICS's long position.| Kingdee International vs. Intuit Inc | Kingdee International vs. Palo Alto Networks | Kingdee International vs. Synopsys | Kingdee International vs. Cadence Design Systems |
| 10X GENOMICS vs. International Game Technology | 10X GENOMICS vs. STEEL DYNAMICS | 10X GENOMICS vs. OURGAME INTHOLDL 00005 | 10X GENOMICS vs. ELL ENVIRONHLDGS HD 0001 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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