Correlation Between Kenon Holdings and Greif,
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 1.37 times more return on investment than Greif,. However, Kenon Holdings is 1.37 times more volatile than Greif, Inc. It trades about 0.1 of its potential returns per unit of risk. Greif, Inc is currently generating about 0.05 per unit of risk. If you would invest 1,924 in Kenon Holdings on September 8, 2024 and sell it today you would earn a total of 1,168 from holding Kenon Holdings or generate 60.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kenon Holdings vs. Greif, Inc
Performance |
Timeline |
Kenon Holdings |
Greif, Inc |
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.Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
Greif, vs. Marchex | Greif, vs. Delta Air Lines | Greif, vs. National CineMedia | Greif, vs. Allegiant Travel |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Fundamental Analysis View fundamental data based on most recent published financial statements |