Correlation Between Kingdee International and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Kingdee International and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Kingdee International and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and PLAYTIKA HOLDING.
Diversification Opportunities for Kingdee International and PLAYTIKA HOLDING
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kingdee and PLAYTIKA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of Kingdee International i.e., Kingdee International and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Kingdee International and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Kingdee International Software is expected to generate 1.77 times more return on investment than PLAYTIKA HOLDING. However, Kingdee International is 1.77 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.03 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.03 per unit of risk. If you would invest 92.00 in Kingdee International Software on October 14, 2024 and sell it today you would earn a total of 6.00 from holding Kingdee International Software or generate 6.52% 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. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Kingdee International |
| PLAYTIKA HOLDING |
Kingdee International and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and PLAYTIKA HOLDING
The main advantage of trading using opposite Kingdee International and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, PLAYTIKA HOLDING 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 PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.| Kingdee International vs. Direct Line Insurance | Kingdee International vs. Vienna Insurance Group | Kingdee International vs. EPSILON HEALTHCARE LTD | Kingdee International vs. Zurich Insurance Group |
| PLAYTIKA HOLDING vs. CVW CLEANTECH INC | PLAYTIKA HOLDING vs. NetSol Technologies | PLAYTIKA HOLDING vs. Kingdee International Software | PLAYTIKA HOLDING vs. Cleanaway Waste Management |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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