Correlation Between Kenon Holdings and Greif,

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings and Greif, 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 Greif, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and Greif, Inc, you can compare the effects of market volatilities on Kenon Holdings and Greif, 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 Greif,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Greif,.

Diversification Opportunities for Kenon Holdings and Greif,

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Kenon and Greif, is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and Greif, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif, Inc 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 Greif,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif, Inc has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and Greif, go up and down completely randomly.

Pair Corralation between Kenon Holdings and Greif,

Considering the 90-day investment horizon Kenon Holdings is expected to generate 1.23 times less return on investment than Greif,. In addition to that, Kenon Holdings is 1.07 times more volatile than Greif, Inc. It trades about 0.21 of its total potential returns per unit of risk. Greif, Inc is currently generating about 0.28 per unit of volatility. If you would invest  6,797  in Greif, Inc on September 6, 2024 and sell it today you would earn a total of  756.00  from holding Greif, Inc or generate 11.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Kenon Holdings  vs.  Greif, Inc

 Performance 
       Timeline  
Kenon Holdings 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Kenon Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Kenon Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.
Greif, Inc 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Greif, Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, Greif, sustained solid returns over the last few months and may actually be approaching a breakup point.

Kenon Holdings and Greif, Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kenon Holdings and Greif,

The main advantage of trading using opposite Kenon Holdings and Greif, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, Greif, 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 Greif, will offset losses from the drop in Greif,'s long position.
The idea behind Kenon Holdings and Greif, Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
CEOs Directory
Screen CEOs from public companies around the world
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules