Correlation Between KENEDIX OFFICE and Hawesko Holding
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Hawesko Holding 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 Hawesko Holding 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 Hawesko Holding AG, you can compare the effects of market volatilities on KENEDIX OFFICE and Hawesko Holding 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 Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Hawesko Holding.
Diversification Opportunities for KENEDIX OFFICE and Hawesko Holding
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KENEDIX and Hawesko is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG 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 Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Hawesko Holding go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Hawesko Holding
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.85 times more return on investment than Hawesko Holding. However, KENEDIX OFFICE INV is 1.17 times less risky than Hawesko Holding. It trades about 0.15 of its potential returns per unit of risk. Hawesko Holding AG is currently generating about 0.08 per unit of risk. If you would invest 86,000 in KENEDIX OFFICE INV on September 5, 2024 and sell it today you would earn a total of 4,500 from holding KENEDIX OFFICE INV or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. Hawesko Holding AG
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Hawesko Holding AG |
KENEDIX OFFICE and Hawesko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Hawesko Holding
The main advantage of trading using opposite KENEDIX OFFICE and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Hawesko Holding 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 Hawesko Holding will offset losses from the drop in Hawesko Holding's long position.| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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