Correlation Between PHILIP and Kenon Holdings
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By analyzing existing cross correlation between PHILIP MORRIS INTL and Kenon Holdings, you can compare the effects of market volatilities on PHILIP 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 PHILIP with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHILIP and Kenon Holdings.
Diversification Opportunities for PHILIP and Kenon Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PHILIP and Kenon is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PHILIP MORRIS INTL and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and PHILIP 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 PHILIP MORRIS INTL 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 PHILIP i.e., PHILIP and Kenon Holdings go up and down completely randomly.
Pair Corralation between PHILIP and Kenon Holdings
Assuming the 90 days trading horizon PHILIP MORRIS INTL is expected to under-perform the Kenon Holdings. But the bond apears to be less risky and, when comparing its historical volatility, PHILIP MORRIS INTL is 2.09 times less risky than Kenon Holdings. The bond trades about 0.0 of its potential returns per unit of risk. The Kenon Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,226 in Kenon Holdings on September 12, 2024 and sell it today you would earn a total of 849.00 from holding Kenon Holdings or generate 38.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.44% |
| Values | Daily Returns |
PHILIP MORRIS INTL vs. Kenon Holdings
Performance |
| Timeline |
| PHILIP MORRIS INTL |
| Kenon Holdings |
PHILIP and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHILIP and Kenon Holdings
The main advantage of trading using opposite PHILIP and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHILIP 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.| PHILIP vs. Funko Inc | PHILIP vs. United Parks Resorts | PHILIP vs. Life Time Group | PHILIP vs. Artisan Partners Asset |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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