Correlation Between Gecina SA and Kilroy Realty
Can any of the company-specific risk be diversified away by investing in both Gecina SA and Kilroy Realty 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 Gecina SA and Kilroy Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gecina SA and Kilroy Realty Corp, you can compare the effects of market volatilities on Gecina SA and Kilroy Realty 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 Gecina SA with a short position of Kilroy Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gecina SA and Kilroy Realty.
Diversification Opportunities for Gecina SA and Kilroy Realty
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gecina and Kilroy is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gecina SA and Kilroy Realty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilroy Realty Corp and Gecina SA 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 Gecina SA are associated (or correlated) with Kilroy Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilroy Realty Corp has no effect on the direction of Gecina SA i.e., Gecina SA and Kilroy Realty go up and down completely randomly.
Pair Corralation between Gecina SA and Kilroy Realty
Assuming the 90 days trading horizon Gecina SA is expected to under-perform the Kilroy Realty. But the stock apears to be less risky and, when comparing its historical volatility, Gecina SA is 1.75 times less risky than Kilroy Realty. The stock trades about -0.12 of its potential returns per unit of risk. The Kilroy Realty Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,640 in Kilroy Realty Corp on September 1, 2024 and sell it today you would earn a total of 220.00 from holding Kilroy Realty Corp or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gecina SA vs. Kilroy Realty Corp
Performance |
| Timeline |
| Gecina SA |
| Kilroy Realty Corp |
Gecina SA and Kilroy Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gecina SA and Kilroy Realty
The main advantage of trading using opposite Gecina SA and Kilroy Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gecina SA position performs unexpectedly, Kilroy Realty 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 Kilroy Realty will offset losses from the drop in Kilroy Realty's long position.| Gecina SA vs. TITANIUM TRANSPORTGROUP | Gecina SA vs. Columbia Sportswear | Gecina SA vs. Lamar Advertising | Gecina SA vs. NTG Nordic Transport |
| Kilroy Realty vs. TYSON FOODS A | Kilroy Realty vs. Entravision Communications | Kilroy Realty vs. CN MODERN DAIRY | Kilroy Realty vs. Ribbon Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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