Correlation Between FLOW TRADERS and Kilroy Realty
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS 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 FLOW TRADERS and Kilroy Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLOW TRADERS LTD and Kilroy Realty Corp, you can compare the effects of market volatilities on FLOW TRADERS 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 FLOW TRADERS with a short position of Kilroy Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and Kilroy Realty.
Diversification Opportunities for FLOW TRADERS and Kilroy Realty
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FLOW and Kilroy is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD 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 FLOW TRADERS 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 FLOW TRADERS LTD 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 FLOW TRADERS i.e., FLOW TRADERS and Kilroy Realty go up and down completely randomly.
Pair Corralation between FLOW TRADERS and Kilroy Realty
Assuming the 90 days horizon FLOW TRADERS is expected to generate 12.69 times less return on investment than Kilroy Realty. But when comparing it to its historical volatility, FLOW TRADERS LTD is 1.71 times less risky than Kilroy Realty. It trades about 0.02 of its potential returns per unit of risk. Kilroy Realty Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,760 in Kilroy Realty Corp on September 14, 2024 and sell it today you would earn a total of 180.00 from holding Kilroy Realty Corp or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. Kilroy Realty Corp
Performance |
| Timeline |
| FLOW TRADERS LTD |
| Kilroy Realty Corp |
FLOW TRADERS and Kilroy Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and Kilroy Realty
The main advantage of trading using opposite FLOW TRADERS and Kilroy Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS 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.| FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. SIVERS SEMICONDUCTORS AB | FLOW TRADERS vs. CHINA HUARONG ENERHD 50 | FLOW TRADERS vs. NORDIC HALIBUT AS |
| Kilroy Realty vs. Solstad Offshore ASA | Kilroy Realty vs. SENECA FOODS A | Kilroy Realty vs. CARSALESCOM | Kilroy Realty vs. Food Life Companies |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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