Correlation Between Kennedy Wilson and Healthcare Realty
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and Healthcare Realty 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 Healthcare Realty 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 Healthcare Realty Trust, you can compare the effects of market volatilities on Kennedy Wilson and Healthcare Realty 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 Healthcare Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and Healthcare Realty.
Diversification Opportunities for Kennedy Wilson and Healthcare Realty
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kennedy and Healthcare is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and Healthcare Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Realty Trust 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 Healthcare Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Realty Trust has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and Healthcare Realty go up and down completely randomly.
Pair Corralation between Kennedy Wilson and Healthcare Realty
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Healthcare Realty. In addition to that, Kennedy Wilson is 1.46 times more volatile than Healthcare Realty Trust. It trades about -0.19 of its total potential returns per unit of risk. Healthcare Realty Trust is currently generating about 0.05 per unit of volatility. If you would invest 1,647 in Healthcare Realty Trust on November 2, 2024 and sell it today you would earn a total of 21.00 from holding Healthcare Realty Trust or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. Healthcare Realty Trust
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| Healthcare Realty Trust |
Kennedy Wilson and Healthcare Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and Healthcare Realty
The main advantage of trading using opposite Kennedy Wilson and Healthcare Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson position performs unexpectedly, Healthcare Realty 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 Healthcare Realty will offset losses from the drop in Healthcare Realty'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 |
| Healthcare Realty vs. Healthpeak Properties | Healthcare Realty vs. Sabra Healthcare REIT | Healthcare Realty vs. Community Healthcare Trust | Healthcare Realty vs. Universal Health Realty |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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