Correlation Between Savers Value and Kenon Holdings
Can any of the company-specific risk be diversified away by investing in both Savers Value 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 Savers Value and Kenon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savers Value Village, and Kenon Holdings, you can compare the effects of market volatilities on Savers Value 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 Savers Value with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savers Value and Kenon Holdings.
Diversification Opportunities for Savers Value and Kenon Holdings
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Savers and Kenon is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Savers Value Village, and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and Savers Value 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 Savers Value Village, 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 Savers Value i.e., Savers Value and Kenon Holdings go up and down completely randomly.
Pair Corralation between Savers Value and Kenon Holdings
Considering the 90-day investment horizon Savers Value Village, is expected to under-perform the Kenon Holdings. In addition to that, Savers Value is 1.01 times more volatile than Kenon Holdings. It trades about -0.06 of its total potential returns per unit of risk. Kenon Holdings is currently generating about 0.05 per unit of volatility. If you would invest 3,100 in Kenon Holdings on October 9, 2024 and sell it today you would earn a total of 69.00 from holding Kenon Holdings or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Savers Value Village, vs. Kenon Holdings
Performance |
| Timeline |
| Savers Value Village, |
| Kenon Holdings |
Savers Value and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savers Value and Kenon Holdings
The main advantage of trading using opposite Savers Value and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savers Value 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.| Savers Value vs. Xunlei Ltd Adr | Savers Value vs. Cracker Barrel Old | Savers Value vs. Kura Sushi USA | Savers Value vs. Deluxe |
| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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