Correlation Between Kilroy Realty and ProShares
Can any of the company-specific risk be diversified away by investing in both Kilroy Realty and ProShares 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 ProShares 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 ProShares SP Kensho, you can compare the effects of market volatilities on Kilroy Realty and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilroy Realty and ProShares.
Diversification Opportunities for Kilroy Realty and ProShares
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kilroy and ProShares is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kilroy Realty Corp and ProShares SP Kensho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP Kensho 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP Kensho has no effect on the direction of Kilroy Realty i.e., Kilroy Realty and ProShares go up and down completely randomly.
Pair Corralation between Kilroy Realty and ProShares
Considering the 90-day investment horizon Kilroy Realty Corp is expected to generate 0.77 times more return on investment than ProShares. However, Kilroy Realty Corp is 1.3 times less risky than ProShares. It trades about 0.11 of its potential returns per unit of risk. ProShares SP Kensho is currently generating about -0.01 per unit of risk. If you would invest 3,259 in Kilroy Realty Corp on September 1, 2024 and sell it today you would earn a total of 894.00 from holding Kilroy Realty Corp or generate 27.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Kilroy Realty Corp vs. ProShares SP Kensho
Performance |
| Timeline |
| Kilroy Realty Corp |
| ProShares SP Kensho |
Kilroy Realty and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilroy Realty and ProShares
The main advantage of trading using opposite Kilroy Realty and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilroy Realty position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Kilroy Realty vs. Douglas Emmett | Kilroy Realty vs. Vornado Realty Trust | Kilroy Realty vs. Highwoods Properties | Kilroy Realty vs. Piedmont Office Realty |
| ProShares vs. ProShares SP Kensho | ProShares vs. ProShares Big Data | ProShares vs. Fidelity Covington Trust | ProShares vs. ProShares Smart Materials |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |