Correlation Between KENEDIX OFFICE and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and GOLD ROAD 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 GOLD ROAD 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 GOLD ROAD RES, you can compare the effects of market volatilities on KENEDIX OFFICE and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and GOLD ROAD.
Diversification Opportunities for KENEDIX OFFICE and GOLD ROAD
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between KENEDIX and GOLD is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and GOLD ROAD go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and GOLD ROAD
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to under-perform the GOLD ROAD. But the stock apears to be less risky and, when comparing its historical volatility, KENEDIX OFFICE INV is 1.61 times less risky than GOLD ROAD. The stock trades about -0.05 of its potential returns per unit of risk. The GOLD ROAD RES is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 113.00 in GOLD ROAD RES on October 26, 2024 and sell it today you would earn a total of 34.00 from holding GOLD ROAD RES or generate 30.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. GOLD ROAD RES
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| GOLD ROAD RES |
KENEDIX OFFICE and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and GOLD ROAD
The main advantage of trading using opposite KENEDIX OFFICE and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD'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 |
| GOLD ROAD vs. New Residential Investment | GOLD ROAD vs. KENEDIX OFFICE INV | GOLD ROAD vs. AOYAMA TRADING | GOLD ROAD 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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