Correlation Between Plaza Centers and Kenon Holdings
Can any of the company-specific risk be diversified away by investing in both Plaza Centers and Kenon Holdings 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 Plaza Centers and Kenon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Centers NV and Kenon Holdings, you can compare the effects of market volatilities on Plaza Centers and Kenon Holdings 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 Plaza Centers with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Centers and Kenon Holdings.
Diversification Opportunities for Plaza Centers and Kenon Holdings
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Plaza and Kenon is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Centers NV and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and Plaza Centers 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 Plaza Centers NV are associated (or correlated) with Kenon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenon Holdings has no effect on the direction of Plaza Centers i.e., Plaza Centers and Kenon Holdings go up and down completely randomly.
Pair Corralation between Plaza Centers and Kenon Holdings
If you would invest (100.00) in Plaza Centers NV on August 25, 2024 and sell it today you would earn a total of 100.00 from holding Plaza Centers NV or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Plaza Centers NV vs. Kenon Holdings
Performance |
| Timeline |
| Plaza Centers NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Kenon Holdings |
Plaza Centers and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Centers and Kenon Holdings
The main advantage of trading using opposite Plaza Centers and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Centers position performs unexpectedly, Kenon Holdings 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 Kenon Holdings will offset losses from the drop in Kenon Holdings' long position.| Plaza Centers vs. Azorim Investment Development | Plaza Centers vs. Isras Investment | Plaza Centers vs. Hiron Trade Investments Industrial | Plaza Centers vs. YD More Investments |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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