Correlation Between Kingdee International and HAVERTY FURNITURE
Can any of the company-specific risk be diversified away by investing in both Kingdee International and HAVERTY FURNITURE 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 HAVERTY FURNITURE 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 HAVERTY FURNITURE A, you can compare the effects of market volatilities on Kingdee International and HAVERTY FURNITURE 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 HAVERTY FURNITURE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and HAVERTY FURNITURE.
Diversification Opportunities for Kingdee International and HAVERTY FURNITURE
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kingdee and HAVERTY is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and HAVERTY FURNITURE A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAVERTY FURNITURE 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 HAVERTY FURNITURE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAVERTY FURNITURE has no effect on the direction of Kingdee International i.e., Kingdee International and HAVERTY FURNITURE go up and down completely randomly.
Pair Corralation between Kingdee International and HAVERTY FURNITURE
Assuming the 90 days trading horizon Kingdee International Software is expected to generate 1.66 times more return on investment than HAVERTY FURNITURE. However, Kingdee International is 1.66 times more volatile than HAVERTY FURNITURE A. It trades about 0.0 of its potential returns per unit of risk. HAVERTY FURNITURE A is currently generating about -0.02 per unit of risk. If you would invest 186.00 in Kingdee International Software on November 9, 2024 and sell it today you would lose (52.00) from holding Kingdee International Software or give up 27.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingdee International Software vs. HAVERTY FURNITURE A
Performance |
| Timeline |
| Kingdee International |
| HAVERTY FURNITURE |
Kingdee International and HAVERTY FURNITURE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and HAVERTY FURNITURE
The main advantage of trading using opposite Kingdee International and HAVERTY FURNITURE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, HAVERTY FURNITURE 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 HAVERTY FURNITURE will offset losses from the drop in HAVERTY FURNITURE's long position.| Kingdee International vs. Performance Food Group | Kingdee International vs. DaChan Food Limited | Kingdee International vs. LIFEWAY FOODS | Kingdee International vs. Coor Service Management |
| HAVERTY FURNITURE vs. NTT DATA | HAVERTY FURNITURE vs. Northern Data AG | HAVERTY FURNITURE vs. Taiwan Semiconductor Manufacturing | HAVERTY FURNITURE vs. Datadog |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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