Correlation Between Global Medical and Kennedy Wilson
Can any of the company-specific risk be diversified away by investing in both Global Medical 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 Global Medical and Kennedy Wilson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Medical REIT and Kennedy Wilson Holdings, you can compare the effects of market volatilities on Global Medical 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 Global Medical with a short position of Kennedy Wilson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Medical and Kennedy Wilson.
Diversification Opportunities for Global Medical and Kennedy Wilson
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Kennedy is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Global Medical REIT 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 Global Medical 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 Global Medical REIT 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 Global Medical i.e., Global Medical and Kennedy Wilson go up and down completely randomly.
Pair Corralation between Global Medical and Kennedy Wilson
Given the investment horizon of 90 days Global Medical REIT is expected to under-perform the Kennedy Wilson. But the stock apears to be less risky and, when comparing its historical volatility, Global Medical REIT is 1.64 times less risky than Kennedy Wilson. The stock trades about -0.4 of its potential returns per unit of risk. The Kennedy Wilson Holdings is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 1,121 in Kennedy Wilson Holdings on September 25, 2024 and sell it today you would lose (95.00) from holding Kennedy Wilson Holdings or give up 8.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Medical REIT vs. Kennedy Wilson Holdings
Performance |
| Timeline |
| Global Medical REIT |
| Kennedy Wilson Holdings |
Global Medical and Kennedy Wilson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Medical and Kennedy Wilson
The main advantage of trading using opposite Global Medical and Kennedy Wilson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Medical 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.| Global Medical vs. Healthpeak Properties | Global Medical vs. Ventas Inc | Global Medical vs. National Health Investors | Global Medical vs. Sabra Healthcare REIT |
| Kennedy Wilson vs. Frp Holdings Ord | Kennedy Wilson vs. Transcontinental Realty Investors | Kennedy Wilson vs. J W Mays | Kennedy Wilson vs. Anywhere Real Estate |
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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