Correlation Between Kenon Holdings and INTERNATIONAL
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By analyzing existing cross correlation between Kenon Holdings and INTERNATIONAL BUSINESS MACHS, you can compare the effects of market volatilities on Kenon Holdings and INTERNATIONAL 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 INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and INTERNATIONAL.
Diversification Opportunities for Kenon Holdings and INTERNATIONAL
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kenon and INTERNATIONAL is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and INTERNATIONAL BUSINESS MACHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BUSINESS 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 INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BUSINESS has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and INTERNATIONAL go up and down completely randomly.
Pair Corralation between Kenon Holdings and INTERNATIONAL
Considering the 90-day investment horizon Kenon Holdings is expected to generate 2.99 times more return on investment than INTERNATIONAL. However, Kenon Holdings is 2.99 times more volatile than INTERNATIONAL BUSINESS MACHS. It trades about 0.03 of its potential returns per unit of risk. INTERNATIONAL BUSINESS MACHS is currently generating about -0.01 per unit of risk. If you would invest 2,456 in Kenon Holdings on August 29, 2024 and sell it today you would earn a total of 494.00 from holding Kenon Holdings or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.96% |
| Values | Daily Returns |
Kenon Holdings vs. INTERNATIONAL BUSINESS MACHS
Performance |
| Timeline |
| Kenon Holdings |
| INTERNATIONAL BUSINESS |
Kenon Holdings and INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and INTERNATIONAL
The main advantage of trading using opposite Kenon Holdings and INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, INTERNATIONAL 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 INTERNATIONAL will offset losses from the drop in INTERNATIONAL'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 |
| INTERNATIONAL vs. JD Sports Fashion | INTERNATIONAL vs. Canlan Ice Sports | INTERNATIONAL vs. Antero Midstream Partners | INTERNATIONAL vs. Saia Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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