Correlation Between Pender Real and Kellner Merger
Can any of the company-specific risk be diversified away by investing in both Pender Real and Kellner Merger 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 Pender Real and Kellner Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and Kellner Merger Fund, you can compare the effects of market volatilities on Pender Real and Kellner Merger 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 Pender Real with a short position of Kellner Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Kellner Merger.
Diversification Opportunities for Pender Real and Kellner Merger
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pender and Kellner is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Kellner Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellner Merger and Pender Real 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 Pender Real Estate are associated (or correlated) with Kellner Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellner Merger has no effect on the direction of Pender Real i.e., Pender Real and Kellner Merger go up and down completely randomly.
Pair Corralation between Pender Real and Kellner Merger
Assuming the 90 days horizon Pender Real Estate is expected to generate 1.43 times more return on investment than Kellner Merger. However, Pender Real is 1.43 times more volatile than Kellner Merger Fund. It trades about 0.56 of its potential returns per unit of risk. Kellner Merger Fund is currently generating about 0.41 per unit of risk. If you would invest 1,002 in Pender Real Estate on October 24, 2024 and sell it today you would earn a total of 6.00 from holding Pender Real Estate or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Pender Real Estate vs. Kellner Merger Fund
Performance |
| Timeline |
| Pender Real Estate |
| Kellner Merger |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pender Real and Kellner Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Kellner Merger
The main advantage of trading using opposite Pender Real and Kellner Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real position performs unexpectedly, Kellner Merger 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 Kellner Merger will offset losses from the drop in Kellner Merger's long position.| Pender Real vs. Vanguard Short Term Government | Pender Real vs. Virtus Seix Government | Pender Real vs. Lord Abbett Government | Pender Real vs. Aig Government Money |
| Kellner Merger vs. Salient Mlp Energy | Kellner Merger vs. Franklin Natural Resources | Kellner Merger vs. Hennessy Bp Energy | Kellner Merger vs. Cohen Steers Mlp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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