Correlation Between ECGI Holdings and Kenon Holdings
Can any of the company-specific risk be diversified away by investing in both ECGI Holdings and Kenon Holdings 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 ECGI Holdings and Kenon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECGI Holdings and Kenon Holdings, you can compare the effects of market volatilities on ECGI Holdings 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 ECGI Holdings with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECGI Holdings and Kenon Holdings.
Diversification Opportunities for ECGI Holdings and Kenon Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ECGI and Kenon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ECGI Holdings and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and ECGI Holdings 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 ECGI Holdings 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 ECGI Holdings i.e., ECGI Holdings and Kenon Holdings go up and down completely randomly.
Pair Corralation between ECGI Holdings and Kenon Holdings
Given the investment horizon of 90 days ECGI Holdings is expected to generate 3.63 times less return on investment than Kenon Holdings. In addition to that, ECGI Holdings is 5.33 times more volatile than Kenon Holdings. It trades about 0.01 of its total potential returns per unit of risk. Kenon Holdings is currently generating about 0.15 per unit of volatility. If you would invest 2,941 in Kenon Holdings on December 18, 2024 and sell it today you would earn a total of 584.00 from holding Kenon Holdings or generate 19.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
ECGI Holdings vs. Kenon Holdings
Performance |
Timeline |
ECGI Holdings |
Kenon Holdings |
ECGI Holdings and Kenon Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ECGI Holdings and Kenon Holdings
The main advantage of trading using opposite ECGI Holdings and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECGI Holdings 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.ECGI Holdings vs. Motorsport Gaming Us | ECGI Holdings vs. Western Digital | ECGI Holdings vs. Bilibili | ECGI Holdings vs. Skillz Platform |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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