Correlation Between Spectrum Brands and Kingdee International
Can any of the company-specific risk be diversified away by investing in both Spectrum Brands 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 Spectrum Brands and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrum Brands Holdings and Kingdee International Software, you can compare the effects of market volatilities on Spectrum Brands 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 Spectrum Brands with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Brands and Kingdee International.
Diversification Opportunities for Spectrum Brands and Kingdee International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spectrum and Kingdee is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and Spectrum Brands 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 Spectrum Brands Holdings 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 Spectrum Brands i.e., Spectrum Brands and Kingdee International go up and down completely randomly.
Pair Corralation between Spectrum Brands and Kingdee International
Considering the 90-day investment horizon Spectrum Brands Holdings is expected to under-perform the Kingdee International. In addition to that, Spectrum Brands is 1.3 times more volatile than Kingdee International Software. It trades about -0.14 of its total potential returns per unit of risk. Kingdee International Software is currently generating about -0.16 per unit of volatility. If you would invest 117.00 in Kingdee International Software on October 30, 2024 and sell it today you would lose (7.00) from holding Kingdee International Software or give up 5.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.68% |
| Values | Daily Returns |
Spectrum Brands Holdings vs. Kingdee International Software
Performance |
| Timeline |
| Spectrum Brands Holdings |
| Kingdee International |
Spectrum Brands and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrum Brands and Kingdee International
The main advantage of trading using opposite Spectrum Brands and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands 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.| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
| Kingdee International vs. Shake Shack | Kingdee International vs. Kaiser Aluminum | Kingdee International vs. First Watch Restaurant | Kingdee International vs. McDonalds |
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
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |