Correlation Between Kingdee International and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both Kingdee International and AEGEAN AIRLINES 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 AEGEAN AIRLINES 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 AEGEAN AIRLINES, you can compare the effects of market volatilities on Kingdee International and AEGEAN AIRLINES 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 AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and AEGEAN AIRLINES.
Diversification Opportunities for Kingdee International and AEGEAN AIRLINES
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kingdee and AEGEAN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES 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 AEGEAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEGEAN AIRLINES has no effect on the direction of Kingdee International i.e., Kingdee International and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between Kingdee International and AEGEAN AIRLINES
Assuming the 90 days trading horizon Kingdee International Software is expected to under-perform the AEGEAN AIRLINES. In addition to that, Kingdee International is 1.93 times more volatile than AEGEAN AIRLINES. It trades about -0.01 of its total potential returns per unit of risk. AEGEAN AIRLINES is currently generating about 0.06 per unit of volatility. If you would invest 645.00 in AEGEAN AIRLINES on October 31, 2024 and sell it today you would earn a total of 414.00 from holding AEGEAN AIRLINES or generate 64.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingdee International Software vs. AEGEAN AIRLINES
Performance |
| Timeline |
| Kingdee International |
| AEGEAN AIRLINES |
Kingdee International and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and AEGEAN AIRLINES
The main advantage of trading using opposite Kingdee International and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, AEGEAN AIRLINES 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 AEGEAN AIRLINES will offset losses from the drop in AEGEAN AIRLINES's long position.| Kingdee International vs. FANDIFI TECHNOLOGY P | Kingdee International vs. Harmony Gold Mining | Kingdee International vs. GALENA MINING LTD | Kingdee International vs. ARDAGH METAL PACDL 0001 |
| AEGEAN AIRLINES vs. MGIC INVESTMENT | AEGEAN AIRLINES vs. UNITED RENTALS | AEGEAN AIRLINES vs. SEI INVESTMENTS | AEGEAN AIRLINES vs. ECHO INVESTMENT ZY |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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