Correlation Between KENEDIX OFFICE and Caseys General
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on KENEDIX OFFICE and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Caseys General.
Diversification Opportunities for KENEDIX OFFICE and Caseys General
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KENEDIX and Caseys is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Caseys General go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Caseys General
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 2.02 times more return on investment than Caseys General. However, KENEDIX OFFICE is 2.02 times more volatile than Caseys General Stores. It trades about -0.01 of its potential returns per unit of risk. Caseys General Stores is currently generating about -0.03 per unit of risk. If you would invest 88,500 in KENEDIX OFFICE INV on October 25, 2024 and sell it today you would lose (500.00) from holding KENEDIX OFFICE INV or give up 0.56% 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. Caseys General Stores
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Caseys General Stores |
KENEDIX OFFICE and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Caseys General
The main advantage of trading using opposite KENEDIX OFFICE and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| KENEDIX OFFICE vs. 24SEVENOFFICE GROUP AB | KENEDIX OFFICE vs. OFFICE DEPOT | KENEDIX OFFICE vs. AGRICULTBK HADR25 YC | KENEDIX OFFICE vs. Sumitomo Mitsui Construction |
| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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