Correlation Between Ascendas India and Kennedy Wilson
Can any of the company-specific risk be diversified away by investing in both Ascendas India 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 Ascendas India and Kennedy Wilson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendas India Trust and Kennedy Wilson Holdings, you can compare the effects of market volatilities on Ascendas India 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 Ascendas India with a short position of Kennedy Wilson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas India and Kennedy Wilson.
Diversification Opportunities for Ascendas India and Kennedy Wilson
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ascendas and Kennedy is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas India Trust 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 Ascendas India 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 Ascendas India Trust 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 Ascendas India i.e., Ascendas India and Kennedy Wilson go up and down completely randomly.
Pair Corralation between Ascendas India and Kennedy Wilson
Assuming the 90 days horizon Ascendas India Trust is expected to generate 1.55 times more return on investment than Kennedy Wilson. However, Ascendas India is 1.55 times more volatile than Kennedy Wilson Holdings. It trades about -0.05 of its potential returns per unit of risk. Kennedy Wilson Holdings is currently generating about -0.1 per unit of risk. If you would invest 77.00 in Ascendas India Trust on December 28, 2024 and sell it today you would lose (9.00) from holding Ascendas India Trust or give up 11.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 91.8% |
Values | Daily Returns |
Ascendas India Trust vs. Kennedy Wilson Holdings
Performance |
Timeline |
Ascendas India Trust |
Kennedy Wilson Holdings |
Ascendas India and Kennedy Wilson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ascendas India and Kennedy Wilson
The main advantage of trading using opposite Ascendas India and Kennedy Wilson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas India 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.Ascendas India vs. Asia Pptys | Ascendas India vs. Aztec Land Comb | Ascendas India vs. Ambase Corp | Ascendas India vs. Bridgemarq Real Estate |
Kennedy Wilson vs. Ascendas India Trust | Kennedy Wilson vs. Asia Pptys | Kennedy Wilson vs. Aztec Land Comb | Kennedy Wilson vs. Ambase 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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