Correlation Between KENEDIX OFFICE and BII Railway
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and BII Railway 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 BII Railway 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 BII Railway Transportation, you can compare the effects of market volatilities on KENEDIX OFFICE and BII Railway 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 BII Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and BII Railway.
Diversification Opportunities for KENEDIX OFFICE and BII Railway
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KENEDIX and BII is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and BII Railway Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BII Railway Transpor 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 BII Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BII Railway Transpor has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and BII Railway go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and BII Railway
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.87 times more return on investment than BII Railway. However, KENEDIX OFFICE INV is 1.15 times less risky than BII Railway. It trades about 0.1 of its potential returns per unit of risk. BII Railway Transportation is currently generating about 0.01 per unit of risk. If you would invest 88,000 in KENEDIX OFFICE INV on August 26, 2024 and sell it today you would earn a total of 3,000 from holding KENEDIX OFFICE INV or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. BII Railway Transportation
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| BII Railway Transpor |
KENEDIX OFFICE and BII Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and BII Railway
The main advantage of trading using opposite KENEDIX OFFICE and BII Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, BII Railway 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 BII Railway will offset losses from the drop in BII Railway's long position.| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
| BII Railway vs. Accenture plc | BII Railway vs. Cognizant Technology Solutions | BII Railway vs. Superior Plus Corp | BII Railway vs. NMI Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |