Correlation Between Kingdee International and Asure Software
Can any of the company-specific risk be diversified away by investing in both Kingdee International and Asure Software 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 Asure Software 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 Asure Software, you can compare the effects of market volatilities on Kingdee International and Asure Software 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 Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and Asure Software.
Diversification Opportunities for Kingdee International and Asure Software
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingdee and Asure is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software 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 Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of Kingdee International i.e., Kingdee International and Asure Software go up and down completely randomly.
Pair Corralation between Kingdee International and Asure Software
If you would invest 947.00 in Asure Software on November 3, 2024 and sell it today you would earn a total of 235.00 from holding Asure Software or generate 24.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kingdee International Software vs. Asure Software
Performance |
| Timeline |
| Kingdee International |
| Asure Software |
Kingdee International and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and Asure Software
The main advantage of trading using opposite Kingdee International and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, Asure Software 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 Asure Software will offset losses from the drop in Asure Software's long position.| Kingdee International vs. Aperture Health | Kingdee International vs. Summit Therapeutics PLC | Kingdee International vs. Alvotech | Kingdee International vs. Videolocity International |
| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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