Correlation Between IShares Property and Kendrion

Can any of the company-specific risk be diversified away by investing in both IShares Property and Kendrion 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 IShares Property and Kendrion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares Property Yield and Kendrion NV, you can compare the effects of market volatilities on IShares Property and Kendrion 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 IShares Property with a short position of Kendrion. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Property and Kendrion.

Diversification Opportunities for IShares Property and Kendrion

-0.59

Correlation Coefficient

IShares Property  Kendrion

Excellent diversification

The 3 months correlation between IShares and Kendrion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares Property Yield and Kendrion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kendrion NV and IShares Property 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 iShares Property Yield are associated (or correlated) with Kendrion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kendrion NV has no effect on the direction of IShares Property i.e., IShares Property and Kendrion go up and down completely randomly.

Pair Corralation between IShares Property and Kendrion

Assuming the 90 days trading horizon iShares Property Yield is expected to generate 0.5 times more return on investment than Kendrion. However, iShares Property Yield is 2.01 times less risky than Kendrion. It trades about 0.06 of its potential returns per unit of risk. Kendrion NV is currently generating about -0.18 per unit of risk. If you would invest  2,856  in iShares Property Yield on September 19, 2024 and sell it today you would earn a total of  88.00  from holding iShares Property Yield or generate 3.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

iShares Property Yield  vs.  Kendrion NV

iShares Property Yield

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Property Yield are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, IShares Property is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Kendrion NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kendrion NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with IShares Property and Kendrion

The main advantage of trading using opposite IShares Property and Kendrion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Property position performs unexpectedly, Kendrion 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 Kendrion will offset losses from the drop in Kendrion's long position.

The idea behind iShares Property Yield and Kendrion NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.