Correlation Between Inmobiliaria Colonial and Kilroy Realty
Can any of the company-specific risk be diversified away by investing in both Inmobiliaria Colonial 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 Inmobiliaria Colonial and Kilroy Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inmobiliaria Colonial SOCIMI and Kilroy Realty Corp, you can compare the effects of market volatilities on Inmobiliaria Colonial 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 Inmobiliaria Colonial with a short position of Kilroy Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inmobiliaria Colonial and Kilroy Realty.
Diversification Opportunities for Inmobiliaria Colonial and Kilroy Realty
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inmobiliaria and Kilroy is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Inmobiliaria Colonial SOCIMI 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 Inmobiliaria Colonial 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 Inmobiliaria Colonial SOCIMI 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 Inmobiliaria Colonial i.e., Inmobiliaria Colonial and Kilroy Realty go up and down completely randomly.
Pair Corralation between Inmobiliaria Colonial and Kilroy Realty
Assuming the 90 days trading horizon Inmobiliaria Colonial SOCIMI is expected to generate 0.74 times more return on investment than Kilroy Realty. However, Inmobiliaria Colonial SOCIMI is 1.34 times less risky than Kilroy Realty. It trades about 0.22 of its potential returns per unit of risk. Kilroy Realty Corp is currently generating about -0.21 per unit of risk. If you would invest 525.00 in Inmobiliaria Colonial SOCIMI on December 1, 2024 and sell it today you would earn a total of 35.00 from holding Inmobiliaria Colonial SOCIMI or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Inmobiliaria Colonial SOCIMI vs. Kilroy Realty Corp
Performance |
| Timeline |
| Inmobiliaria Colonial |
| Kilroy Realty Corp |
Inmobiliaria Colonial and Kilroy Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inmobiliaria Colonial and Kilroy Realty
The main advantage of trading using opposite Inmobiliaria Colonial and Kilroy Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inmobiliaria Colonial 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.| Inmobiliaria Colonial vs. Air Transport Services | Inmobiliaria Colonial vs. Yuexiu Transport Infrastructure | Inmobiliaria Colonial vs. GREENX METALS LTD | Inmobiliaria Colonial vs. SCANSOURCE |
| Kilroy Realty vs. Digital Realty Trust | Kilroy Realty vs. Gecina SA | Kilroy Realty vs. Japan Real Estate | Kilroy Realty vs. Mirvac Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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