Correlation Between Sporttotal and KINGDEE INTL
Can any of the company-specific risk be diversified away by investing in both Sporttotal 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 Sporttotal and KINGDEE INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sporttotal AG and KINGDEE INTL SOFTWA, you can compare the effects of market volatilities on Sporttotal 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 Sporttotal with a short position of KINGDEE INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sporttotal and KINGDEE INTL.
Diversification Opportunities for Sporttotal and KINGDEE INTL
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sporttotal and KINGDEE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sporttotal AG 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 Sporttotal 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 Sporttotal AG 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 Sporttotal i.e., Sporttotal and KINGDEE INTL go up and down completely randomly.
Pair Corralation between Sporttotal and KINGDEE INTL
Assuming the 90 days trading horizon Sporttotal AG is expected to under-perform the KINGDEE INTL. In addition to that, Sporttotal is 1.02 times more volatile than KINGDEE INTL SOFTWA. It trades about -0.01 of its total potential returns per unit of risk. KINGDEE INTL SOFTWA is currently generating about 0.0 per unit of volatility. If you would invest 122.00 in KINGDEE INTL SOFTWA on September 2, 2024 and sell it today you would lose (20.00) from holding KINGDEE INTL SOFTWA or give up 16.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sporttotal AG vs. KINGDEE INTL SOFTWA
Performance |
| Timeline |
| Sporttotal AG |
| KINGDEE INTL SOFTWA |
Sporttotal and KINGDEE INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sporttotal and KINGDEE INTL
The main advantage of trading using opposite Sporttotal and KINGDEE INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sporttotal 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.| Sporttotal vs. SIVERS SEMICONDUCTORS AB | Sporttotal vs. Darden Restaurants | Sporttotal vs. Reliance Steel Aluminum | Sporttotal vs. Q2M Managementberatung AG |
| KINGDEE INTL vs. PLAYWAY SA ZY 10 | KINGDEE INTL vs. KOOL2PLAY SA ZY | KINGDEE INTL vs. NTG Nordic Transport | KINGDEE INTL vs. Liberty Broadband |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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