Correlation Between Kenon Holdings and TRAVELERS
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By analyzing existing cross correlation between Kenon Holdings and TRAVELERS INS GROUP, you can compare the effects of market volatilities on Kenon Holdings and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and TRAVELERS.
Diversification Opportunities for Kenon Holdings and TRAVELERS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kenon and TRAVELERS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and TRAVELERS go up and down completely randomly.
Pair Corralation between Kenon Holdings and TRAVELERS
Considering the 90-day investment horizon Kenon Holdings is expected to generate 3.96 times more return on investment than TRAVELERS. However, Kenon Holdings is 3.96 times more volatile than TRAVELERS INS GROUP. It trades about 0.24 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.11 per unit of risk. If you would invest 2,975 in Kenon Holdings on October 22, 2024 and sell it today you would earn a total of 362.00 from holding Kenon Holdings or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Kenon Holdings vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| Kenon Holdings |
| TRAVELERS INS GROUP |
Kenon Holdings and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and TRAVELERS
The main advantage of trading using opposite Kenon Holdings and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS'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 |
| TRAVELERS vs. Codexis | TRAVELERS vs. CVR Partners LP | TRAVELERS vs. Entegris | TRAVELERS vs. ASML Holding NV |
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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