Correlation Between Kenon Holdings and PHILIP
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By analyzing existing cross correlation between Kenon Holdings and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Kenon Holdings and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and PHILIP.
Diversification Opportunities for Kenon Holdings and PHILIP
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kenon and PHILIP is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and PHILIP go up and down completely randomly.
Pair Corralation between Kenon Holdings and PHILIP
Considering the 90-day investment horizon Kenon Holdings is expected to generate 0.99 times more return on investment than PHILIP. However, Kenon Holdings is 1.01 times less risky than PHILIP. It trades about 0.2 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about -0.11 per unit of risk. If you would invest 2,811 in Kenon Holdings on September 4, 2024 and sell it today you would earn a total of 218.00 from holding Kenon Holdings or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kenon Holdings vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| Kenon Holdings |
| PHILIP MORRIS INTL |
Kenon Holdings and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and PHILIP
The main advantage of trading using opposite Kenon Holdings and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP'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 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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