Correlation Between Kingdee International and G III
Can any of the company-specific risk be diversified away by investing in both Kingdee International and G III 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 G III 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 G III Apparel Group, you can compare the effects of market volatilities on Kingdee International and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and G III.
Diversification Opportunities for Kingdee International and G III
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingdee and GI4 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Kingdee International i.e., Kingdee International and G III go up and down completely randomly.
Pair Corralation between Kingdee International and G III
Assuming the 90 days trading horizon Kingdee International Software is expected to generate 2.13 times more return on investment than G III. However, Kingdee International is 2.13 times more volatile than G III Apparel Group. It trades about 0.19 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.06 per unit of risk. If you would invest 107.00 in Kingdee International Software on October 30, 2024 and sell it today you would earn a total of 12.00 from holding Kingdee International Software or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingdee International Software vs. G III Apparel Group
Performance |
| Timeline |
| Kingdee International |
| G III Apparel |
Kingdee International and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and G III
The main advantage of trading using opposite Kingdee International and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| Kingdee International vs. AIR PRODCHEMICALS | Kingdee International vs. Yuexiu Transport Infrastructure | Kingdee International vs. Quaker Chemical | Kingdee International vs. PTT Global Chemical |
| G III vs. Cardinal Health | G III vs. OPKO HEALTH | G III vs. Air Transport Services | G III vs. Fortescue Metals Group |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |