Correlation Between Kilroy Realty and Franklin Exponential
Can any of the company-specific risk be diversified away by investing in both Kilroy Realty and Franklin Exponential 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 Franklin Exponential 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 Franklin Exponential Data, you can compare the effects of market volatilities on Kilroy Realty and Franklin Exponential 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 Franklin Exponential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilroy Realty and Franklin Exponential.
Diversification Opportunities for Kilroy Realty and Franklin Exponential
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kilroy and Franklin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kilroy Realty Corp and Franklin Exponential Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Exponential Data 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 Franklin Exponential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Exponential Data has no effect on the direction of Kilroy Realty i.e., Kilroy Realty and Franklin Exponential go up and down completely randomly.
Pair Corralation between Kilroy Realty and Franklin Exponential
Considering the 90-day investment horizon Kilroy Realty is expected to generate 1.25 times less return on investment than Franklin Exponential. In addition to that, Kilroy Realty is 1.93 times more volatile than Franklin Exponential Data. It trades about 0.04 of its total potential returns per unit of risk. Franklin Exponential Data is currently generating about 0.09 per unit of volatility. If you would invest 1,917 in Franklin Exponential Data on September 3, 2024 and sell it today you would earn a total of 761.00 from holding Franklin Exponential Data or generate 39.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kilroy Realty Corp vs. Franklin Exponential Data
Performance |
| Timeline |
| Kilroy Realty Corp |
| Franklin Exponential Data |
Kilroy Realty and Franklin Exponential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilroy Realty and Franklin Exponential
The main advantage of trading using opposite Kilroy Realty and Franklin Exponential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilroy Realty position performs unexpectedly, Franklin Exponential 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 Franklin Exponential will offset losses from the drop in Franklin Exponential's long position.| Kilroy Realty vs. Office Properties Income | Kilroy Realty vs. SL Green Realty | Kilroy Realty vs. Highwoods Properties | Kilroy Realty vs. Equity Commonwealth |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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