Correlation Between Healthpeak Properties and Kennedy Wilson
Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and Kennedy Wilson 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 Healthpeak Properties and Kennedy Wilson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and Kennedy Wilson Holdings, you can compare the effects of market volatilities on Healthpeak Properties and Kennedy Wilson 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 Healthpeak Properties with a short position of Kennedy Wilson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and Kennedy Wilson.
Diversification Opportunities for Healthpeak Properties and Kennedy Wilson
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Healthpeak and Kennedy is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and Kennedy Wilson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kennedy Wilson Holdings and Healthpeak Properties 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 Healthpeak Properties are associated (or correlated) with Kennedy Wilson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kennedy Wilson Holdings has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and Kennedy Wilson go up and down completely randomly.
Pair Corralation between Healthpeak Properties and Kennedy Wilson
Considering the 90-day investment horizon Healthpeak Properties is expected to generate 0.72 times more return on investment than Kennedy Wilson. However, Healthpeak Properties is 1.38 times less risky than Kennedy Wilson. It trades about -0.3 of its potential returns per unit of risk. Kennedy Wilson Holdings is currently generating about -0.26 per unit of risk. If you would invest 2,198 in Healthpeak Properties on September 26, 2024 and sell it today you would lose (180.00) from holding Healthpeak Properties or give up 8.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthpeak Properties vs. Kennedy Wilson Holdings
Performance |
| Timeline |
| Healthpeak Properties |
| Kennedy Wilson Holdings |
Healthpeak Properties and Kennedy Wilson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthpeak Properties and Kennedy Wilson
The main advantage of trading using opposite Healthpeak Properties and Kennedy Wilson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, Kennedy Wilson 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 Kennedy Wilson will offset losses from the drop in Kennedy Wilson's long position.| Healthpeak Properties vs. Realty Income | Healthpeak Properties vs. Park Hotels Resorts | Healthpeak Properties vs. Power REIT | Healthpeak Properties vs. Urban Edge Properties |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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