Correlation Between Kingdee International and TITANIUM TRANSPORTGROUP

Can any of the company-specific risk be diversified away by investing in both Kingdee International and TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP, you can compare the effects of market volatilities on Kingdee International and TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingdee International and TITANIUM TRANSPORTGROUP.

Diversification Opportunities for Kingdee International and TITANIUM TRANSPORTGROUP

0.18

Correlation Coefficient

Kingdee International  TITANIUM TRANSPORTGROUP

Average diversification

The 3 months correlation between Kingdee and TITANIUM is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and TITANIUM TRANSPORTGROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TITANIUM TRANSPORTGROUP has no effect on the direction of Kingdee International i.e., Kingdee International and TITANIUM TRANSPORTGROUP go up and down completely randomly.

Pair Corralation between Kingdee International and TITANIUM TRANSPORTGROUP

Assuming the 90 days trading horizon Kingdee International Software is expected to under-perform the TITANIUM TRANSPORTGROUP. In addition to that, Kingdee International is 1.53 times more volatile than TITANIUM TRANSPORTGROUP. It trades about -0.02 of its total potential returns per unit of risk. TITANIUM TRANSPORTGROUP is currently generating about 0.02 per unit of volatility. If you would invest  134.00  in TITANIUM TRANSPORTGROUP on October 11, 2024 and sell it today you would earn a total of  17.00  from holding TITANIUM TRANSPORTGROUP or generate 12.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kingdee International Software  vs.  TITANIUM TRANSPORTGROUP

Kingdee International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kingdee International Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

TITANIUM TRANSPORTGROUP

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TITANIUM TRANSPORTGROUP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TITANIUM TRANSPORTGROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Kingdee International and TITANIUM TRANSPORTGROUP

The main advantage of trading using opposite Kingdee International and TITANIUM TRANSPORTGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingdee International position performs unexpectedly, TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP will offset losses from the drop in TITANIUM TRANSPORTGROUP's long position.

The idea behind Kingdee International Software and TITANIUM TRANSPORTGROUP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..