Correlation Between TKH Group and IShares Property
Can any of the company-specific risk be diversified away by investing in both TKH Group and IShares Property 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 TKH Group and IShares Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TKH Group NV and iShares Property Yield, you can compare the effects of market volatilities on TKH Group and IShares Property 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 TKH Group with a short position of IShares Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKH Group and IShares Property.
Diversification Opportunities for TKH Group and IShares Property
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TKH and IShares is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding TKH Group NV and iShares Property Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Property Yield and TKH Group 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 TKH Group NV are associated (or correlated) with IShares Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Property Yield has no effect on the direction of TKH Group i.e., TKH Group and IShares Property go up and down completely randomly.
Pair Corralation between TKH Group and IShares Property
Assuming the 90 days trading horizon TKH Group NV is expected to under-perform the IShares Property. In addition to that, TKH Group is 2.58 times more volatile than iShares Property Yield. It trades about -0.37 of its total potential returns per unit of risk. iShares Property Yield is currently generating about 0.26 per unit of volatility. If you would invest 2,911 in iShares Property Yield on August 31, 2024 and sell it today you would earn a total of 167.00 from holding iShares Property Yield or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TKH Group NV vs. iShares Property Yield
Performance |
| Timeline |
| TKH Group NV |
| iShares Property Yield |
TKH Group and IShares Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKH Group and IShares Property
The main advantage of trading using opposite TKH Group and IShares Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKH Group position performs unexpectedly, IShares Property 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 IShares Property will offset losses from the drop in IShares Property's long position.| TKH Group vs. Aalberts Industries NV | TKH Group vs. BE Semiconductor Industries | TKH Group vs. AMG Advanced Metallurgical | TKH Group vs. Koninklijke Vopak NV |
| IShares Property vs. iShares European Property | IShares Property vs. iShares Asia Property | IShares Property vs. iShares Developed Markets | IShares Property vs. VanEck Global Real |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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