Correlation Between Kenon Holdings and Illumin Holdings
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings and Illumin Holdings 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 Illumin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and illumin Holdings, you can compare the effects of market volatilities on Kenon Holdings and Illumin Holdings 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 Illumin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Illumin Holdings.
Diversification Opportunities for Kenon Holdings and Illumin Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kenon and Illumin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and illumin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on illumin Holdings 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 Illumin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of illumin Holdings has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and Illumin Holdings go up and down completely randomly.
Pair Corralation between Kenon Holdings and Illumin Holdings
If you would invest 2,848 in Kenon Holdings on September 13, 2024 and sell it today you would earn a total of 231.00 from holding Kenon Holdings or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kenon Holdings vs. illumin Holdings
Performance |
| Timeline |
| Kenon Holdings |
| illumin Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kenon Holdings and Illumin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and Illumin Holdings
The main advantage of trading using opposite Kenon Holdings and Illumin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, Illumin Holdings 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 Illumin Holdings will offset losses from the drop in Illumin Holdings' long position.| Kenon Holdings vs. AGL Energy | Kenon Holdings vs. Aquagold International | Kenon Holdings vs. Thrivent High Yield | Kenon Holdings vs. Morningstar Unconstrained Allocation |
| Illumin Holdings vs. NETGEAR | Illumin Holdings vs. Zedge Inc | Illumin Holdings vs. Park Ohio Holdings | Illumin Holdings vs. Getty Images Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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