Correlation Between Kennedy Wilson and Global Net
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and Global Net 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 Global Net 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 Global Net Lease, you can compare the effects of market volatilities on Kennedy Wilson and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and Global Net.
Diversification Opportunities for Kennedy Wilson and Global Net
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kennedy and Global is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and Global Net go up and down completely randomly.
Pair Corralation between Kennedy Wilson and Global Net
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Global Net. But the stock apears to be less risky and, when comparing its historical volatility, Kennedy Wilson Holdings is 1.06 times less risky than Global Net. The stock trades about -0.26 of its potential returns per unit of risk. The Global Net Lease is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,172 in Global Net Lease on October 28, 2024 and sell it today you would earn a total of 44.00 from holding Global Net Lease or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. Global Net Lease
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| Global Net Lease |
Kennedy Wilson and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and Global Net
The main advantage of trading using opposite Kennedy Wilson and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net'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 |
| Global Net vs. Modiv Inc | Global Net vs. Precinct Properties New | Global Net vs. Global Net Lease | Global Net vs. NexPoint Diversified Real |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| 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 | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |