Correlation Between LIFEWAY FOODS and KINGDEE INTL
Can any of the company-specific risk be diversified away by investing in both LIFEWAY FOODS 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 LIFEWAY FOODS and KINGDEE INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFEWAY FOODS and KINGDEE INTL SOFTWA, you can compare the effects of market volatilities on LIFEWAY FOODS 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 LIFEWAY FOODS with a short position of KINGDEE INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFEWAY FOODS and KINGDEE INTL.
Diversification Opportunities for LIFEWAY FOODS and KINGDEE INTL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LIFEWAY and KINGDEE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LIFEWAY FOODS 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 LIFEWAY FOODS 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 LIFEWAY FOODS 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 LIFEWAY FOODS i.e., LIFEWAY FOODS and KINGDEE INTL go up and down completely randomly.
Pair Corralation between LIFEWAY FOODS and KINGDEE INTL
If you would invest 1,120 in LIFEWAY FOODS on September 12, 2024 and sell it today you would earn a total of 1,140 from holding LIFEWAY FOODS or generate 101.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LIFEWAY FOODS vs. KINGDEE INTL SOFTWA
Performance |
| Timeline |
| LIFEWAY FOODS |
| KINGDEE INTL SOFTWA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
LIFEWAY FOODS and KINGDEE INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFEWAY FOODS and KINGDEE INTL
The main advantage of trading using opposite LIFEWAY FOODS and KINGDEE INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFEWAY FOODS 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.| LIFEWAY FOODS vs. Apple Inc | LIFEWAY FOODS vs. Apple Inc | LIFEWAY FOODS vs. Apple Inc | LIFEWAY FOODS vs. Apple Inc |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |