Correlation Between Kingdee International and Gaxosai
Can any of the company-specific risk be diversified away by investing in both Kingdee International and Gaxosai 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 Kingdee International and Gaxosai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingdee International Software and Gaxosai, you can compare the effects of market volatilities on Kingdee International and Gaxosai 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 Kingdee International with a short position of Gaxosai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and Gaxosai.
Diversification Opportunities for Kingdee International and Gaxosai
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingdee and Gaxosai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai and Kingdee International 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 Kingdee International Software are associated (or correlated) with Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of Kingdee International i.e., Kingdee International and Gaxosai go up and down completely randomly.
Pair Corralation between Kingdee International and Gaxosai
Assuming the 90 days horizon Kingdee International Software is expected to generate 0.19 times more return on investment than Gaxosai. However, Kingdee International Software is 5.16 times less risky than Gaxosai. It trades about -0.12 of its potential returns per unit of risk. Gaxosai is currently generating about -0.02 per unit of risk. If you would invest 206.00 in Kingdee International Software on September 7, 2025 and sell it today you would lose (17.00) from holding Kingdee International Software or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingdee International Software vs. Gaxosai
Performance |
| Timeline |
| Kingdee International |
| Gaxosai |
Kingdee International and Gaxosai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and Gaxosai
The main advantage of trading using opposite Kingdee International and Gaxosai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, Gaxosai 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 Gaxosai will offset losses from the drop in Gaxosai's long position.| Kingdee International vs. SAP SE ADR | Kingdee International vs. Salesforce | Kingdee International vs. Applovin Corp | Kingdee International vs. Shopify |
| Gaxosai vs. DXC Technology Co | Gaxosai vs. Kingdee International Software | Gaxosai vs. High Performance Beverages | Gaxosai vs. Fernhill Beverage |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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