Correlation Between EHEALTH and Kilroy Realty
Can any of the company-specific risk be diversified away by investing in both EHEALTH and Kilroy 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 EHEALTH and Kilroy Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHEALTH and Kilroy Realty Corp, you can compare the effects of market volatilities on EHEALTH and Kilroy 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 EHEALTH with a short position of Kilroy Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHEALTH and Kilroy Realty.
Diversification Opportunities for EHEALTH and Kilroy Realty
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EHEALTH and Kilroy is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding EHEALTH and Kilroy Realty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilroy Realty Corp and EHEALTH 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 EHEALTH are associated (or correlated) with Kilroy Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilroy Realty Corp has no effect on the direction of EHEALTH i.e., EHEALTH and Kilroy Realty go up and down completely randomly.
Pair Corralation between EHEALTH and Kilroy Realty
Assuming the 90 days trading horizon EHEALTH is expected to under-perform the Kilroy Realty. In addition to that, EHEALTH is 2.04 times more volatile than Kilroy Realty Corp. It trades about -0.02 of its total potential returns per unit of risk. Kilroy Realty Corp is currently generating about 0.04 per unit of volatility. If you would invest 3,332 in Kilroy Realty Corp on September 2, 2024 and sell it today you would earn a total of 528.00 from holding Kilroy Realty Corp or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EHEALTH vs. Kilroy Realty Corp
Performance |
| Timeline |
| EHEALTH |
| Kilroy Realty Corp |
EHEALTH and Kilroy Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHEALTH and Kilroy Realty
The main advantage of trading using opposite EHEALTH and Kilroy Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHEALTH position performs unexpectedly, Kilroy 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 Kilroy Realty will offset losses from the drop in Kilroy Realty's long position.| EHEALTH vs. SIVERS SEMICONDUCTORS AB | EHEALTH vs. Darden Restaurants | EHEALTH vs. Reliance Steel Aluminum | EHEALTH vs. Q2M Managementberatung AG |
| Kilroy Realty vs. CI GAMES SA | Kilroy Realty vs. Bausch Health Companies | Kilroy Realty vs. EHEALTH | Kilroy Realty vs. FRACTAL GAMING 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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