Correlation Between Ke HoldingsInc and Country Garden

Can any of the company-specific risk be diversified away by investing in both Ke HoldingsInc and Country Garden 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 Ke HoldingsInc and Country Garden into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ke HoldingsInc and Country Garden Services, you can compare the effects of market volatilities on Ke HoldingsInc and Country Garden 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 Ke HoldingsInc with a short position of Country Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ke HoldingsInc and Country Garden.

Diversification Opportunities for Ke HoldingsInc and Country Garden

0.0

Correlation Coefficient

Ke HoldingsInc  Country Garden

Pay attention - limited upside

The 3 months correlation between BEKE and Country is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ke HoldingsInc and Country Garden Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Garden Services and Ke HoldingsInc 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 Ke HoldingsInc are associated (or correlated) with Country Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Garden Services has no effect on the direction of Ke HoldingsInc i.e., Ke HoldingsInc and Country Garden go up and down completely randomly.

Pair Corralation between Ke HoldingsInc and Country Garden

If you would invest  1,443  in Ke HoldingsInc on February 9, 2024 and sell it today you would earn a total of  204.00  from holding Ke HoldingsInc or generate 14.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ke HoldingsInc  vs.  Country Garden Services

Ke HoldingsInc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ke HoldingsInc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating forward-looking signals, Ke HoldingsInc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Country Garden Services

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Country Garden Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Country Garden is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Ke HoldingsInc and Country Garden

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

The idea behind Ke HoldingsInc and Country Garden Services 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.