Correlation Between Kingdee International and BingEx
Can any of the company-specific risk be diversified away by investing in both Kingdee International and BingEx 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 BingEx 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 BingEx, you can compare the effects of market volatilities on Kingdee International and BingEx 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 BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and BingEx.
Diversification Opportunities for Kingdee International and BingEx
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingdee and BingEx is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx 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 BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of Kingdee International i.e., Kingdee International and BingEx go up and down completely randomly.
Pair Corralation between Kingdee International and BingEx
If you would invest 110.00 in Kingdee International Software on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Kingdee International Software or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Kingdee International Software vs. BingEx
Performance |
| Timeline |
| Kingdee International |
| BingEx |
Kingdee International and BingEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and BingEx
The main advantage of trading using opposite Kingdee International and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx's long position.| Kingdee International vs. Albemarle | Kingdee International vs. Balchem | Kingdee International vs. Skechers USA | Kingdee International vs. Lincoln Electric 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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