Correlation Between VIVA WINE and KINGDEE INTL
Can any of the company-specific risk be diversified away by investing in both VIVA WINE and KINGDEE INTL 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 VIVA WINE and KINGDEE INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIVA WINE GROUP and KINGDEE INTL SOFTWA, you can compare the effects of market volatilities on VIVA WINE and KINGDEE INTL 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 VIVA WINE with a short position of KINGDEE INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIVA WINE and KINGDEE INTL.
Diversification Opportunities for VIVA WINE and KINGDEE INTL
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VIVA and KINGDEE is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding VIVA WINE GROUP and KINGDEE INTL SOFTWA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINGDEE INTL SOFTWA and VIVA WINE 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 VIVA WINE GROUP are associated (or correlated) with KINGDEE INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINGDEE INTL SOFTWA has no effect on the direction of VIVA WINE i.e., VIVA WINE and KINGDEE INTL go up and down completely randomly.
Pair Corralation between VIVA WINE and KINGDEE INTL
Assuming the 90 days horizon VIVA WINE GROUP is expected to under-perform the KINGDEE INTL. But the stock apears to be less risky and, when comparing its historical volatility, VIVA WINE GROUP is 3.37 times less risky than KINGDEE INTL. The stock trades about -0.16 of its potential returns per unit of risk. The KINGDEE INTL SOFTWA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 66.00 in KINGDEE INTL SOFTWA on September 12, 2024 and sell it today you would earn a total of 60.00 from holding KINGDEE INTL SOFTWA or generate 90.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
VIVA WINE GROUP vs. KINGDEE INTL SOFTWA
Performance |
| Timeline |
| VIVA WINE GROUP |
| KINGDEE INTL SOFTWA |
VIVA WINE and KINGDEE INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIVA WINE and KINGDEE INTL
The main advantage of trading using opposite VIVA WINE and KINGDEE INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIVA WINE position performs unexpectedly, KINGDEE INTL 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 KINGDEE INTL will offset losses from the drop in KINGDEE INTL's long position.| VIVA WINE vs. Hitachi Construction Machinery | VIVA WINE vs. Sumitomo Mitsui Construction | VIVA WINE vs. HYDROFARM HLD GRP | VIVA WINE vs. AGRICULTBK HADR25 YC |
| KINGDEE INTL vs. SIMS METAL MGT | KINGDEE INTL vs. LION ONE METALS | KINGDEE INTL vs. Japan Post Insurance | KINGDEE INTL vs. Direct Line Insurance |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |