Correlation Between KENEDIX OFFICE and Chiba Bank
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Chiba Bank 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 KENEDIX OFFICE and Chiba Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and Chiba Bank, you can compare the effects of market volatilities on KENEDIX OFFICE and Chiba Bank 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 KENEDIX OFFICE with a short position of Chiba Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Chiba Bank.
Diversification Opportunities for KENEDIX OFFICE and Chiba Bank
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KENEDIX and Chiba is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Chiba Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiba Bank and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with Chiba Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiba Bank has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Chiba Bank go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Chiba Bank
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.48 times more return on investment than Chiba Bank. However, KENEDIX OFFICE INV is 2.1 times less risky than Chiba Bank. It trades about -0.01 of its potential returns per unit of risk. Chiba Bank is currently generating about -0.01 per unit of risk. If you would invest 90,000 in KENEDIX OFFICE INV on October 26, 2024 and sell it today you would lose (2,000) from holding KENEDIX OFFICE INV or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. Chiba Bank
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Chiba Bank |
KENEDIX OFFICE and Chiba Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Chiba Bank
The main advantage of trading using opposite KENEDIX OFFICE and Chiba Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Chiba Bank 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 Chiba Bank will offset losses from the drop in Chiba Bank's long position.| KENEDIX OFFICE vs. H2O Retailing | KENEDIX OFFICE vs. REVO INSURANCE SPA | KENEDIX OFFICE vs. SBI Insurance Group | KENEDIX OFFICE vs. FAST RETAIL ADR |
| Chiba Bank vs. Synovus Financial Corp | Chiba Bank vs. Corporate Office Properties | Chiba Bank vs. KENEDIX OFFICE INV | Chiba Bank vs. Infrastrutture Wireless Italiane |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |