Correlation Between Kennedy Wilson and EXp World
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and EXp World 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 EXp World 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 eXp World Holdings, you can compare the effects of market volatilities on Kennedy Wilson and EXp World 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 EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and EXp World.
Diversification Opportunities for Kennedy Wilson and EXp World
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kennedy and EXp is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and eXp World Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eXp World Holdings 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 EXp World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eXp World Holdings has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and EXp World go up and down completely randomly.
Pair Corralation between Kennedy Wilson and EXp World
Allowing for the 90-day total investment horizon Kennedy Wilson is expected to generate 1.81 times less return on investment than EXp World. But when comparing it to its historical volatility, Kennedy Wilson Holdings is 1.63 times less risky than EXp World. It trades about 0.07 of its potential returns per unit of risk. eXp World Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,078 in eXp World Holdings on August 31, 2024 and sell it today you would earn a total of 307.00 from holding eXp World Holdings or generate 28.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. eXp World Holdings
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| eXp World Holdings |
Kennedy Wilson and EXp World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and EXp World
The main advantage of trading using opposite Kennedy Wilson and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson position performs unexpectedly, EXp World 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 EXp World will offset losses from the drop in EXp World'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 |
| EXp World vs. Re Max Holding | EXp World vs. Fathom Holdings | EXp World vs. Anywhere Real Estate | EXp World vs. RMR Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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