Correlation Between KILROY and The9
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By analyzing existing cross correlation between KILROY RLTY L and The9 Ltd ADR, you can compare the effects of market volatilities on KILROY and The9 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 KILROY with a short position of The9. Check out your portfolio center. Please also check ongoing floating volatility patterns of KILROY and The9.
Diversification Opportunities for KILROY and The9
Excellent diversification
The 3 months correlation between KILROY and The9 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding KILROY RLTY L and The9 Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The9 Ltd ADR and KILROY 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 KILROY RLTY L are associated (or correlated) with The9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The9 Ltd ADR has no effect on the direction of KILROY i.e., KILROY and The9 go up and down completely randomly.
Pair Corralation between KILROY and The9
Assuming the 90 days trading horizon KILROY RLTY L is expected to under-perform the The9. But the bond apears to be less risky and, when comparing its historical volatility, KILROY RLTY L is 10.71 times less risky than The9. The bond trades about 0.0 of its potential returns per unit of risk. The The9 Ltd ADR is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 766.00 in The9 Ltd ADR on September 3, 2024 and sell it today you would earn a total of 709.00 from holding The9 Ltd ADR or generate 92.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.08% |
| Values | Daily Returns |
KILROY RLTY L vs. The9 Ltd ADR
Performance |
| Timeline |
| KILROY RLTY L |
| The9 Ltd ADR |
KILROY and The9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KILROY and The9
The main advantage of trading using opposite KILROY and The9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KILROY position performs unexpectedly, The9 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 The9 will offset losses from the drop in The9's long position.| KILROY vs. The9 Ltd ADR | KILROY vs. Cracker Barrel Old | KILROY vs. RCI Hospitality Holdings | KILROY vs. Evolution Gaming Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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