Correlation Between Kingdee International and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Kingdee International and Coeur Mining 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 Coeur Mining 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 Coeur Mining, you can compare the effects of market volatilities on Kingdee International and Coeur Mining 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 Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and Coeur Mining.
Diversification Opportunities for Kingdee International and Coeur Mining
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingdee and Coeur is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining 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 Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Kingdee International i.e., Kingdee International and Coeur Mining go up and down completely randomly.
Pair Corralation between Kingdee International and Coeur Mining
Assuming the 90 days trading horizon Kingdee International Software is expected to generate 2.76 times more return on investment than Coeur Mining. However, Kingdee International is 2.76 times more volatile than Coeur Mining. It trades about 0.01 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.03 per unit of risk. If you would invest 117.00 in Kingdee International Software on October 16, 2024 and sell it today you would lose (20.00) from holding Kingdee International Software or give up 17.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingdee International Software vs. Coeur Mining
Performance |
| Timeline |
| Kingdee International |
| Coeur Mining |
Kingdee International and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and Coeur Mining
The main advantage of trading using opposite Kingdee International and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Kingdee International vs. GRIFFIN MINING LTD | Kingdee International vs. ANTA SPORTS PRODUCT | Kingdee International vs. De Grey Mining | Kingdee International vs. Yuexiu Transport Infrastructure |
| Coeur Mining vs. alstria office REIT AG | Coeur Mining vs. Neinor Homes SA | Coeur Mining vs. CITY OFFICE REIT | Coeur Mining vs. CAIRN HOMES EO |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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