Correlation Between KENEDIX OFFICE and Swatch Group
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Swatch Group 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 Swatch Group 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 The Swatch Group, you can compare the effects of market volatilities on KENEDIX OFFICE and Swatch Group 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 Swatch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Swatch Group.
Diversification Opportunities for KENEDIX OFFICE and Swatch Group
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KENEDIX and Swatch is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and The Swatch Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swatch Group 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 Swatch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swatch Group has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Swatch Group go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Swatch Group
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.48 times more return on investment than Swatch Group. However, KENEDIX OFFICE INV is 2.1 times less risky than Swatch Group. It trades about 0.1 of its potential returns per unit of risk. The Swatch Group is currently generating about -0.06 per unit of risk. If you would invest 86,500 in KENEDIX OFFICE INV on November 7, 2024 and sell it today you would earn a total of 8,000 from holding KENEDIX OFFICE INV or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.61% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. The Swatch Group
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Swatch Group |
KENEDIX OFFICE and Swatch Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Swatch Group
The main advantage of trading using opposite KENEDIX OFFICE and Swatch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Swatch Group 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 Swatch Group will offset losses from the drop in Swatch Group's long position.| KENEDIX OFFICE vs. Planet Fitness | KENEDIX OFFICE vs. BRAEMAR HOTELS RES | KENEDIX OFFICE vs. MELIA HOTELS | KENEDIX OFFICE vs. Dalata Hotel Group |
| Swatch Group vs. CARDINAL HEALTH | Swatch Group vs. WESANA HEALTH HOLD | Swatch Group vs. Air Lease | Swatch Group vs. Planet Fitness |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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