Correlation Between Kennedy Wilson and Avalon GloboCare
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and Avalon GloboCare 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 Kennedy Wilson and Avalon GloboCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kennedy Wilson Holdings and Avalon GloboCare Corp, you can compare the effects of market volatilities on Kennedy Wilson and Avalon GloboCare 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 Kennedy Wilson with a short position of Avalon GloboCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and Avalon GloboCare.
Diversification Opportunities for Kennedy Wilson and Avalon GloboCare
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kennedy and Avalon is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and Avalon GloboCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalon GloboCare Corp and Kennedy Wilson 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 Kennedy Wilson Holdings are associated (or correlated) with Avalon GloboCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalon GloboCare Corp has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and Avalon GloboCare go up and down completely randomly.
Pair Corralation between Kennedy Wilson and Avalon GloboCare
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Avalon GloboCare. But the stock apears to be less risky and, when comparing its historical volatility, Kennedy Wilson Holdings is 8.59 times less risky than Avalon GloboCare. The stock trades about -0.02 of its potential returns per unit of risk. The Avalon GloboCare Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,180 in Avalon GloboCare Corp on August 31, 2024 and sell it today you would lose (2,900) from holding Avalon GloboCare Corp or give up 91.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. Avalon GloboCare Corp
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| Avalon GloboCare Corp |
Kennedy Wilson and Avalon GloboCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and Avalon GloboCare
The main advantage of trading using opposite Kennedy Wilson and Avalon GloboCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson position performs unexpectedly, Avalon GloboCare 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 Avalon GloboCare will offset losses from the drop in Avalon GloboCare's long position.| Kennedy Wilson vs. Frp Holdings Ord | Kennedy Wilson vs. Transcontinental Realty Investors | Kennedy Wilson vs. Anywhere Real Estate | Kennedy Wilson vs. Re Max Holding |
| Avalon GloboCare vs. Ascendas India Trust | Avalon GloboCare vs. Asia Pptys | Avalon GloboCare vs. Adler Group SA | Avalon GloboCare vs. Aztec Land Comb |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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