Correlation Between Kilroy Realty and America Great
Can any of the company-specific risk be diversified away by investing in both Kilroy Realty and America Great 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 Kilroy Realty and America Great into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kilroy Realty Corp and America Great Health, you can compare the effects of market volatilities on Kilroy Realty and America Great 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 Kilroy Realty with a short position of America Great. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilroy Realty and America Great.
Diversification Opportunities for Kilroy Realty and America Great
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kilroy and America is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kilroy Realty Corp and America Great Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on America Great Health and Kilroy Realty 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 Kilroy Realty Corp are associated (or correlated) with America Great. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of America Great Health has no effect on the direction of Kilroy Realty i.e., Kilroy Realty and America Great go up and down completely randomly.
Pair Corralation between Kilroy Realty and America Great
Considering the 90-day investment horizon Kilroy Realty Corp is expected to generate 0.15 times more return on investment than America Great. However, Kilroy Realty Corp is 6.46 times less risky than America Great. It trades about 0.17 of its potential returns per unit of risk. America Great Health is currently generating about -0.16 per unit of risk. If you would invest 3,475 in Kilroy Realty Corp on September 2, 2024 and sell it today you would earn a total of 678.00 from holding Kilroy Realty Corp or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Kilroy Realty Corp vs. America Great Health
Performance |
| Timeline |
| Kilroy Realty Corp |
| America Great Health |
Kilroy Realty and America Great Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilroy Realty and America Great
The main advantage of trading using opposite Kilroy Realty and America Great positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilroy Realty position performs unexpectedly, America Great 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 America Great will offset losses from the drop in America Great's long position.| Kilroy Realty vs. Hudson Pacific Properties | Kilroy Realty vs. Highwoods Properties | Kilroy Realty vs. Cousins Properties Incorporated | Kilroy Realty vs. Piedmont Office Realty |
| America Great vs. Boston Properties | America Great vs. Kilroy Realty Corp | America Great vs. SL Green Realty | America Great vs. Vornado Realty Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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