Correlation Between Cboe UK and KCR Residential
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cboe UK Consumer and KCR Residential Reit, you can compare the effects of market volatilities on Cboe UK and KCR Residential 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 Cboe UK with a short position of KCR Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and KCR Residential.
Diversification Opportunities for Cboe UK and KCR Residential
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cboe and KCR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and KCR Residential Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCR Residential Reit and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with KCR Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCR Residential Reit has no effect on the direction of Cboe UK i.e., Cboe UK and KCR Residential go up and down completely randomly.
Pair Corralation between Cboe UK and KCR Residential
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.91 times more return on investment than KCR Residential. However, Cboe UK Consumer is 1.1 times less risky than KCR Residential. It trades about 0.27 of its potential returns per unit of risk. KCR Residential Reit is currently generating about 0.0 per unit of risk. If you would invest 2,771,134 in Cboe UK Consumer on August 30, 2024 and sell it today you would earn a total of 484,330 from holding Cboe UK Consumer or generate 17.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. KCR Residential Reit
Performance |
| Timeline |
Cboe UK and KCR Residential Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
KCR Residential Reit
Pair trading matchups for KCR Residential
Pair Trading with Cboe UK and KCR Residential
The main advantage of trading using opposite Cboe UK and KCR Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, KCR Residential 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 KCR Residential will offset losses from the drop in KCR Residential's long position.| Cboe UK vs. Lendinvest PLC | Cboe UK vs. Monster Beverage Corp | Cboe UK vs. Cembra Money Bank | Cboe UK vs. UNIQA Insurance Group |
| KCR Residential vs. Martin Marietta Materials | KCR Residential vs. Jupiter Fund Management | KCR Residential vs. Spirent Communications plc | KCR Residential vs. Liontrust Asset Management |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |