Correlation Between J W and Kennedy Wilson
Can any of the company-specific risk be diversified away by investing in both J W and Kennedy Wilson 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 J W and Kennedy Wilson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J W Mays and Kennedy Wilson Holdings, you can compare the effects of market volatilities on J W and Kennedy Wilson 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 J W with a short position of Kennedy Wilson. Check out your portfolio center. Please also check ongoing floating volatility patterns of J W and Kennedy Wilson.
Diversification Opportunities for J W and Kennedy Wilson
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAYS and Kennedy is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding J W Mays and Kennedy Wilson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kennedy Wilson Holdings and J W 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 J W Mays are associated (or correlated) with Kennedy Wilson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kennedy Wilson Holdings has no effect on the direction of J W i.e., J W and Kennedy Wilson go up and down completely randomly.
Pair Corralation between J W and Kennedy Wilson
Given the investment horizon of 90 days J W Mays is expected to under-perform the Kennedy Wilson. But the stock apears to be less risky and, when comparing its historical volatility, J W Mays is 2.07 times less risky than Kennedy Wilson. The stock trades about -0.38 of its potential returns per unit of risk. The Kennedy Wilson Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,113 in Kennedy Wilson Holdings on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Kennedy Wilson Holdings or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
J W Mays vs. Kennedy Wilson Holdings
Performance |
| Timeline |
| J W Mays |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kennedy Wilson Holdings |
J W and Kennedy Wilson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J W and Kennedy Wilson
The main advantage of trading using opposite J W and Kennedy Wilson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J W position performs unexpectedly, Kennedy Wilson 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 Kennedy Wilson will offset losses from the drop in Kennedy Wilson's long position.| J W vs. Investcorp Credit Management | J W vs. Medalist Diversified Reit | J W vs. Aquagold International | J W vs. Morningstar Unconstrained Allocation |
| Kennedy Wilson vs. Investcorp Credit Management | Kennedy Wilson vs. Medalist Diversified Reit | Kennedy Wilson vs. Aquagold International | Kennedy Wilson vs. Morningstar Unconstrained Allocation |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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