Correlation Between Kennedy Wilson and National Storage
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and National Storage 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 National Storage 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 National Storage Affiliates, you can compare the effects of market volatilities on Kennedy Wilson and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and National Storage.
Diversification Opportunities for Kennedy Wilson and National Storage
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kennedy and National is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and National Storage go up and down completely randomly.
Pair Corralation between Kennedy Wilson and National Storage
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the National Storage. In addition to that, Kennedy Wilson is 2.44 times more volatile than National Storage Affiliates. It trades about -0.17 of its total potential returns per unit of risk. National Storage Affiliates is currently generating about -0.08 per unit of volatility. If you would invest 2,138 in National Storage Affiliates on November 1, 2024 and sell it today you would lose (31.00) from holding National Storage Affiliates or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. National Storage Affiliates
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| National Storage Aff |
Kennedy Wilson and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and National Storage
The main advantage of trading using opposite Kennedy Wilson and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.| Kennedy Wilson vs. Frp Holdings Ord | Kennedy Wilson vs. Transcontinental Realty Investors | Kennedy Wilson vs. J W Mays | Kennedy Wilson vs. Anywhere Real Estate |
| National Storage vs. Schweiter Technologies AG | National Storage vs. Perseus Mining Limited | National Storage vs. ServiceNow | National Storage vs. Griffon |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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