Correlation Between Kingdee International and Bio Techne
Can any of the company-specific risk be diversified away by investing in both Kingdee International and Bio Techne 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 Bio Techne 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 Bio Techne Corp, you can compare the effects of market volatilities on Kingdee International and Bio Techne 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 Bio Techne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and Bio Techne.
Diversification Opportunities for Kingdee International and Bio Techne
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kingdee and Bio is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and Bio Techne Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Techne Corp 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 Bio Techne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Techne Corp has no effect on the direction of Kingdee International i.e., Kingdee International and Bio Techne go up and down completely randomly.
Pair Corralation between Kingdee International and Bio Techne
Assuming the 90 days trading horizon Kingdee International Software is expected to generate 1.68 times more return on investment than Bio Techne. However, Kingdee International is 1.68 times more volatile than Bio Techne Corp. It trades about 0.2 of its potential returns per unit of risk. Bio Techne Corp is currently generating about 0.01 per unit of risk. If you would invest 107.00 in Kingdee International Software on October 31, 2024 and sell it today you would earn a total of 13.00 from holding Kingdee International Software or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kingdee International Software vs. Bio Techne Corp
Performance |
| Timeline |
| Kingdee International |
| Bio Techne Corp |
Kingdee International and Bio Techne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and Bio Techne
The main advantage of trading using opposite Kingdee International and Bio Techne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, Bio Techne 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 Bio Techne will offset losses from the drop in Bio Techne's long position.| Kingdee International vs. FANDIFI TECHNOLOGY P | Kingdee International vs. Harmony Gold Mining | Kingdee International vs. GALENA MINING LTD | Kingdee International vs. ARDAGH METAL PACDL 0001 |
| Bio Techne vs. Zoom Video Communications | Bio Techne vs. Geely Automobile Holdings | Bio Techne vs. SUN LIFE FINANCIAL | Bio Techne vs. BANKINTER ADR 2007 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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