Correlation Between KENEDIX OFFICE and Ipsen SA
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Ipsen SA 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 Ipsen SA 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 Ipsen SA, you can compare the effects of market volatilities on KENEDIX OFFICE and Ipsen SA 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 Ipsen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Ipsen SA.
Diversification Opportunities for KENEDIX OFFICE and Ipsen SA
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KENEDIX and Ipsen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Ipsen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipsen SA 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 Ipsen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipsen SA has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Ipsen SA go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Ipsen SA
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 1.15 times more return on investment than Ipsen SA. However, KENEDIX OFFICE is 1.15 times more volatile than Ipsen SA. It trades about 0.04 of its potential returns per unit of risk. Ipsen SA is currently generating about -0.11 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 1,000.00 from holding KENEDIX OFFICE INV or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. Ipsen SA
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Ipsen SA |
KENEDIX OFFICE and Ipsen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Ipsen SA
The main advantage of trading using opposite KENEDIX OFFICE and Ipsen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Ipsen SA 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 Ipsen SA will offset losses from the drop in Ipsen SA's long position.| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
| Ipsen SA vs. CENTURIA OFFICE REIT | Ipsen SA vs. KENEDIX OFFICE INV | Ipsen SA vs. Tower One Wireless | Ipsen SA vs. CODERE ONLINE LUX |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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