Correlation Between Kingdee International and H M
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By analyzing existing cross correlation between Kingdee International Software and H M Hennes, you can compare the effects of market volatilities on Kingdee International and H M 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 H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and H M.
Diversification Opportunities for Kingdee International and H M
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kingdee and HMSB is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes 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 H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of Kingdee International i.e., Kingdee International and H M go up and down completely randomly.
Pair Corralation between Kingdee International and H M
Assuming the 90 days trading horizon Kingdee International Software is expected to under-perform the H M. But the stock apears to be less risky and, when comparing its historical volatility, Kingdee International Software is 1.1 times less risky than H M. The stock trades about -0.38 of its potential returns per unit of risk. The H M Hennes is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 1,429 in H M Hennes on October 11, 2024 and sell it today you would lose (159.00) from holding H M Hennes or give up 11.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingdee International Software vs. H M Hennes
Performance |
| Timeline |
| Kingdee International |
| H M Hennes |
Kingdee International and H M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and H M
The main advantage of trading using opposite Kingdee International and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's long position.| Kingdee International vs. CHINA TONTINE WINES | Kingdee International vs. VIVA WINE GROUP | Kingdee International vs. Aegean Airlines SA | Kingdee International vs. Singapore Airlines Limited |
| H M vs. AXWAY SOFTWARE EO | H M vs. Kingdee International Software | H M vs. Singapore Telecommunications Limited | H M vs. Take Two Interactive Software |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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