Correlation Between Summit Therapeutics and Kilroy Realty
Can any of the company-specific risk be diversified away by investing in both Summit Therapeutics 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 Summit Therapeutics and Kilroy Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Therapeutics PLC and Kilroy Realty Corp, you can compare the effects of market volatilities on Summit Therapeutics 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 Summit Therapeutics with a short position of Kilroy Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Therapeutics and Kilroy Realty.
Diversification Opportunities for Summit Therapeutics and Kilroy Realty
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and Kilroy is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Summit Therapeutics PLC 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 Summit Therapeutics 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 Summit Therapeutics PLC 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 Summit Therapeutics i.e., Summit Therapeutics and Kilroy Realty go up and down completely randomly.
Pair Corralation between Summit Therapeutics and Kilroy Realty
Given the investment horizon of 90 days Summit Therapeutics PLC is expected to generate 8.45 times more return on investment than Kilroy Realty. However, Summit Therapeutics is 8.45 times more volatile than Kilroy Realty Corp. It trades about 0.08 of its potential returns per unit of risk. Kilroy Realty Corp is currently generating about 0.01 per unit of risk. If you would invest 346.00 in Summit Therapeutics PLC on November 9, 2024 and sell it today you would earn a total of 1,721 from holding Summit Therapeutics PLC or generate 497.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Therapeutics PLC vs. Kilroy Realty Corp
Performance |
| Timeline |
| Summit Therapeutics PLC |
| Kilroy Realty Corp |
Summit Therapeutics and Kilroy Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Therapeutics and Kilroy Realty
The main advantage of trading using opposite Summit Therapeutics and Kilroy Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Therapeutics 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.| Summit Therapeutics vs. Nkarta Inc | Summit Therapeutics vs. Cullinan Oncology LLC | Summit Therapeutics vs. Kezar Life Sciences | Summit Therapeutics vs. Kronos Bio |
| Kilroy Realty vs. Hudson Pacific Properties | Kilroy Realty vs. Highwoods Properties | Kilroy Realty vs. Cousins Properties Incorporated | Kilroy Realty vs. Piedmont Office Realty |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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