Correlation Between Kingdee International and Transcode Therapeutics

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

Diversification Opportunities for Kingdee International and Transcode Therapeutics

0.45

Correlation Coefficient

Kingdee International  Transcode Therapeutics

Very weak diversification

The 3 months correlation between Kingdee and Transcode is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kingdee International Software and Transcode Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transcode Therapeutics 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 Transcode Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transcode Therapeutics has no effect on the direction of Kingdee International i.e., Kingdee International and Transcode Therapeutics go up and down completely randomly.

Pair Corralation between Kingdee International and Transcode Therapeutics

Assuming the 90 days horizon Kingdee International Software is expected to generate 0.2 times more return on investment than Transcode Therapeutics. However, Kingdee International Software is 4.97 times less risky than Transcode Therapeutics. It trades about -0.13 of its potential returns per unit of risk. Transcode Therapeutics is currently generating about -0.05 per unit of risk. If you would invest  206.00  in Kingdee International Software on September 5, 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	Weak
Accuracy	100.0%
Values	Daily Returns

Kingdee International Software  vs.  Transcode Therapeutics

Kingdee International

Risk-Adjusted Performance

Weakest

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

Transcode Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Transcode Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Kingdee International and Transcode Therapeutics

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

The idea behind Kingdee International Software and Transcode Therapeutics 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..