Correlation Between Klépierre and British Land
Can any of the company-specific risk be diversified away by investing in both Klépierre and British Land 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 Klépierre and British Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klpierre SA and British Land, you can compare the effects of market volatilities on Klépierre and British Land 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 Klépierre with a short position of British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klépierre and British Land.
Diversification Opportunities for Klépierre and British Land
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Klépierre and British is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Klpierre SA and British Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land and Klépierre 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 Klpierre SA are associated (or correlated) with British Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British Land has no effect on the direction of Klépierre i.e., Klépierre and British Land go up and down completely randomly.
Pair Corralation between Klépierre and British Land
If you would invest 569.00 in British Land on August 27, 2024 and sell it today you would earn a total of 0.00 from holding British Land or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Klpierre SA vs. British Land
Performance |
| Timeline |
| Klpierre SA |
| British Land |
Klépierre and British Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klépierre and British Land
The main advantage of trading using opposite Klépierre and British Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klépierre position performs unexpectedly, British Land 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 British Land will offset losses from the drop in British Land's long position.| Klépierre vs. Smart REIT | Klépierre vs. Riocan REIT | Klépierre vs. Plaza Retail REIT | Klépierre vs. Choice Properties Real |
| British Land vs. British Land | British Land vs. Global Net Lease, | British Land vs. VICI Properties | British Land vs. Highlands REIT |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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