Correlation Between Kingdee International and Hawkins
Can any of the company-specific risk be diversified away by investing in both Kingdee International and Hawkins 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 Hawkins 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 Hawkins, you can compare the effects of market volatilities on Kingdee International and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and Hawkins.
Diversification Opportunities for Kingdee International and Hawkins
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingdee and Hawkins is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Kingdee International i.e., Kingdee International and Hawkins go up and down completely randomly.
Pair Corralation between Kingdee International and Hawkins
Assuming the 90 days horizon Kingdee International is expected to generate 1.66 times less return on investment than Hawkins. In addition to that, Kingdee International is 2.06 times more volatile than Hawkins. It trades about 0.03 of its total potential returns per unit of risk. Hawkins is currently generating about 0.1 per unit of volatility. If you would invest 5,640 in Hawkins on June 11, 2025 and sell it today you would earn a total of 11,606 from holding Hawkins or generate 205.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.47% |
| Values | Daily Returns |
Kingdee International Software vs. Hawkins
Performance |
| Timeline |
| Kingdee International |
| Hawkins |
Kingdee International and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingdee International and Hawkins
The main advantage of trading using opposite Kingdee International and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Kingdee International vs. Serve Robotics Common | Kingdee International vs. Cheche Group Class | Kingdee International vs. Wallbox NV | Kingdee International vs. GMO Internet |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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