Correlation Between Corporate Office and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both Corporate Office and KENEDIX OFFICE 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 Corporate Office and KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Office Properties and KENEDIX OFFICE INV, you can compare the effects of market volatilities on Corporate Office and KENEDIX OFFICE 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 Corporate Office with a short position of KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and KENEDIX OFFICE.
Diversification Opportunities for Corporate Office and KENEDIX OFFICE
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Corporate and KENEDIX is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV and Corporate Office 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 Corporate Office Properties are associated (or correlated) with KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of Corporate Office i.e., Corporate Office and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between Corporate Office and KENEDIX OFFICE
Assuming the 90 days horizon Corporate Office is expected to generate 1.17 times less return on investment than KENEDIX OFFICE. But when comparing it to its historical volatility, Corporate Office Properties is 1.04 times less risky than KENEDIX OFFICE. It trades about 0.16 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 85,500 in KENEDIX OFFICE INV on September 1, 2024 and sell it today you would earn a total of 5,500 from holding KENEDIX OFFICE INV or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Office Properties vs. KENEDIX OFFICE INV
Performance |
| Timeline |
| Corporate Office Pro |
| KENEDIX OFFICE INV |
Corporate Office and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and KENEDIX OFFICE
The main advantage of trading using opposite Corporate Office and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| Corporate Office vs. Clean Energy Fuels | Corporate Office vs. BJs Restaurants | Corporate Office vs. FRACTAL GAMING GROUP | Corporate Office vs. ANGLER GAMING PLC |
| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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