Correlation Between Office Properties and KKRS
Can any of the company-specific risk be diversified away by investing in both Office Properties and KKRS 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 Office Properties and KKRS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Office Properties Income and KKRS, you can compare the effects of market volatilities on Office Properties and KKRS 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 Office Properties with a short position of KKRS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Office Properties and KKRS.
Diversification Opportunities for Office Properties and KKRS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Office and KKRS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Office Properties Income and KKRS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKRS and Office Properties 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 Office Properties Income are associated (or correlated) with KKRS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKRS has no effect on the direction of Office Properties i.e., Office Properties and KKRS go up and down completely randomly.
Pair Corralation between Office Properties and KKRS
Assuming the 90 days horizon Office Properties Income is expected to under-perform the KKRS. In addition to that, Office Properties is 6.15 times more volatile than KKRS. It trades about -0.07 of its total potential returns per unit of risk. KKRS is currently generating about -0.16 per unit of volatility. If you would invest 1,995 in KKRS on August 27, 2024 and sell it today you would lose (56.00) from holding KKRS or give up 2.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Office Properties Income vs. KKRS
Performance |
| Timeline |
| Office Properties Income |
| KKRS |
Office Properties and KKRS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Office Properties and KKRS
The main advantage of trading using opposite Office Properties and KKRS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Office Properties position performs unexpectedly, KKRS 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 KKRS will offset losses from the drop in KKRS's long position.| Office Properties vs. Realty Income | Office Properties vs. First Industrial Realty | Office Properties vs. Healthcare Realty Trust | Office Properties vs. Park Hotels Resorts |
| KKRS vs. United States Cellular | KKRS vs. United States Cellular | KKRS vs. Southern Company Series | KKRS vs. Affiliated Managers 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |