Correlation Between Washington Mutual and KENGEN PLC
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By analyzing existing cross correlation between Washington Mutual Investors and KENGEN PLC, you can compare the effects of market volatilities on Washington Mutual and KENGEN PLC 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 Washington Mutual with a short position of KENGEN PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and KENGEN PLC.
Diversification Opportunities for Washington Mutual and KENGEN PLC
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Washington and KENGEN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and KENGEN PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENGEN PLC and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with KENGEN PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENGEN PLC has no effect on the direction of Washington Mutual i.e., Washington Mutual and KENGEN PLC go up and down completely randomly.
Pair Corralation between Washington Mutual and KENGEN PLC
Assuming the 90 days horizon Washington Mutual is expected to generate 2.86 times less return on investment than KENGEN PLC. But when comparing it to its historical volatility, Washington Mutual Investors is 3.46 times less risky than KENGEN PLC. It trades about 0.29 of its potential returns per unit of risk. KENGEN PLC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 375.00 in KENGEN PLC on November 3, 2024 and sell it today you would earn a total of 46.00 from holding KENGEN PLC or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Washington Mutual Investors vs. KENGEN PLC
Performance |
| Timeline |
| Washington Mutual |
| KENGEN PLC |
Washington Mutual and KENGEN PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and KENGEN PLC
The main advantage of trading using opposite Washington Mutual and KENGEN PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, KENGEN PLC 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 KENGEN PLC will offset losses from the drop in KENGEN PLC's long position.| Washington Mutual vs. Neuberger Berman Real | Washington Mutual vs. Dunham Real Estate | Washington Mutual vs. Real Estate Ultrasector | Washington Mutual vs. Texton Property |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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