Correlation Between Urban Edge and Kennedy Wilson
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Kennedy Wilson 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 Urban Edge and Kennedy Wilson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Kennedy Wilson Holdings, you can compare the effects of market volatilities on Urban Edge and Kennedy Wilson 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 Urban Edge with a short position of Kennedy Wilson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Kennedy Wilson.
Diversification Opportunities for Urban Edge and Kennedy Wilson
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Urban and Kennedy is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Kennedy Wilson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kennedy Wilson Holdings and Urban Edge 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 Urban Edge Properties are associated (or correlated) with Kennedy Wilson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kennedy Wilson Holdings has no effect on the direction of Urban Edge i.e., Urban Edge and Kennedy Wilson go up and down completely randomly.
Pair Corralation between Urban Edge and Kennedy Wilson
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.53 times more return on investment than Kennedy Wilson. However, Urban Edge Properties is 1.9 times less risky than Kennedy Wilson. It trades about 0.15 of its potential returns per unit of risk. Kennedy Wilson Holdings is currently generating about -0.02 per unit of risk. If you would invest 2,208 in Urban Edge Properties on August 25, 2024 and sell it today you would earn a total of 87.00 from holding Urban Edge Properties or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Kennedy Wilson Holdings
Performance |
| Timeline |
| Urban Edge Properties |
| Kennedy Wilson Holdings |
Urban Edge and Kennedy Wilson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Kennedy Wilson
The main advantage of trading using opposite Urban Edge and Kennedy Wilson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Kennedy Wilson 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 Kennedy Wilson will offset losses from the drop in Kennedy Wilson's long position.| Urban Edge vs. Site Centers Corp | Urban Edge vs. Inventrust Properties Corp | Urban Edge vs. Retail Opportunity Investments | Urban Edge vs. Netstreit Corp |
| Kennedy Wilson vs. Investcorp Credit Management | Kennedy Wilson vs. Medalist Diversified Reit | Kennedy Wilson vs. Aquagold International | Kennedy Wilson vs. Morningstar Unconstrained Allocation |
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.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |