Correlation Between Kingdee International and WESANA HEALTH
Can any of the company-specific risk be diversified away by investing in both Kingdee International and WESANA HEALTH 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 WESANA HEALTH 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 WESANA HEALTH HOLD, you can compare the effects of market volatilities on Kingdee International and WESANA HEALTH 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 WESANA HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and WESANA HEALTH.
Diversification Opportunities for Kingdee International and WESANA HEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingdee and WESANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and WESANA HEALTH HOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESANA HEALTH HOLD 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 WESANA HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESANA HEALTH HOLD has no effect on the direction of Kingdee International i.e., Kingdee International and WESANA HEALTH go up and down completely randomly.
Pair Corralation between Kingdee International and WESANA HEALTH
If you would invest 98.00 in Kingdee International Software on November 4, 2024 and sell it today you would earn a total of 27.00 from holding Kingdee International Software or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Kingdee International Software vs. WESANA HEALTH HOLD
Performance |
| Timeline |
| Kingdee International |
| WESANA HEALTH HOLD |
Kingdee International and WESANA HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and WESANA HEALTH
The main advantage of trading using opposite Kingdee International and WESANA HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, WESANA HEALTH 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 WESANA HEALTH will offset losses from the drop in WESANA HEALTH's long position.| Kingdee International vs. Mitsubishi Gas Chemical | Kingdee International vs. Eastman Chemical | Kingdee International vs. WisdomTree Investments | Kingdee International vs. Mitsui Chemicals |
| WESANA HEALTH vs. Novo Nordisk AS | WESANA HEALTH vs. CSL LTD SPONADR | WESANA HEALTH vs. Mercedes Benz Group AG | WESANA HEALTH vs. Vertex Pharmaceuticals Incorporated |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |