Correlation Between Kenon Holdings and Anterix
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings and Anterix 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 Kenon Holdings and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and Anterix, you can compare the effects of market volatilities on Kenon Holdings and Anterix 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 Kenon Holdings with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Anterix.
Diversification Opportunities for Kenon Holdings and Anterix
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kenon and Anterix is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Kenon Holdings 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 Kenon Holdings are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and Anterix go up and down completely randomly.
Pair Corralation between Kenon Holdings and Anterix
Considering the 90-day investment horizon Kenon Holdings is expected to generate 1.33 times less return on investment than Anterix. But when comparing it to its historical volatility, Kenon Holdings is 1.3 times less risky than Anterix. It trades about 0.11 of its potential returns per unit of risk. Anterix is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,302 in Anterix on August 31, 2024 and sell it today you would earn a total of 179.00 from holding Anterix or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kenon Holdings vs. Anterix
Performance |
| Timeline |
| Kenon Holdings |
| Anterix |
Kenon Holdings and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and Anterix
The main advantage of trading using opposite Kenon Holdings and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. AGL Energy |
| Anterix vs. RLJ Lodging Trust | Anterix vs. Aquagold International | Anterix vs. Stepstone Group | Anterix vs. Morningstar Unconstrained Allocation |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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