Correlation Between Kennedy Wilson and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and Cohen Steers 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 Cohen Steers 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 Cohen Steers Realty, you can compare the effects of market volatilities on Kennedy Wilson and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and Cohen Steers.
Diversification Opportunities for Kennedy Wilson and Cohen Steers
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kennedy and Cohen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Realty has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and Cohen Steers go up and down completely randomly.
Pair Corralation between Kennedy Wilson and Cohen Steers
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Cohen Steers. In addition to that, Kennedy Wilson is 1.64 times more volatile than Cohen Steers Realty. It trades about -0.26 of its total potential returns per unit of risk. Cohen Steers Realty is currently generating about -0.12 per unit of volatility. If you would invest 7,019 in Cohen Steers Realty on November 3, 2024 and sell it today you would lose (401.00) from holding Cohen Steers Realty or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. Cohen Steers Realty
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| Cohen Steers Realty |
Kennedy Wilson and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and Cohen Steers
The main advantage of trading using opposite Kennedy Wilson and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. T Rowe Price | Cohen Steers vs. Rationalpier 88 Convertible | Cohen Steers vs. Touchstone Ultra Short | Cohen Steers vs. Ab Bond Inflation |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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