Correlation Between HELIOS TECHS and Kingdee International
Can any of the company-specific risk be diversified away by investing in both HELIOS TECHS and Kingdee International 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 HELIOS TECHS and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HELIOS TECHS INC and Kingdee International Software, you can compare the effects of market volatilities on HELIOS TECHS and Kingdee International 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 HELIOS TECHS with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HELIOS TECHS and Kingdee International.
Diversification Opportunities for HELIOS TECHS and Kingdee International
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HELIOS and Kingdee is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HELIOS TECHS INC and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and HELIOS TECHS 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 HELIOS TECHS INC are associated (or correlated) with Kingdee International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingdee International has no effect on the direction of HELIOS TECHS i.e., HELIOS TECHS and Kingdee International go up and down completely randomly.
Pair Corralation between HELIOS TECHS and Kingdee International
Assuming the 90 days horizon HELIOS TECHS is expected to generate 2.81 times less return on investment than Kingdee International. But when comparing it to its historical volatility, HELIOS TECHS INC is 1.53 times less risky than Kingdee International. It trades about 0.03 of its potential returns per unit of risk. Kingdee International Software is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Kingdee International Software on November 3, 2024 and sell it today you would earn a total of 34.00 from holding Kingdee International Software or generate 37.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HELIOS TECHS INC vs. Kingdee International Software
Performance |
| Timeline |
| HELIOS TECHS INC |
| Kingdee International |
HELIOS TECHS and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HELIOS TECHS and Kingdee International
The main advantage of trading using opposite HELIOS TECHS and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HELIOS TECHS position performs unexpectedly, Kingdee International 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 International will offset losses from the drop in Kingdee International's long position.| HELIOS TECHS vs. Siemens Aktiengesellschaft | HELIOS TECHS vs. Vestas Wind Systems | HELIOS TECHS vs. Superior Plus Corp | HELIOS TECHS vs. Origin Agritech |
| Kingdee International vs. AIR LIQUIDE ADR | Kingdee International vs. RYANAIR HLDGS ADR | Kingdee International vs. SOLSTAD OFFSHORE NK | Kingdee International vs. SOGECLAIR SA INH |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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