Correlation Between First Industrial and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both First Industrial 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 First Industrial and KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and KENEDIX OFFICE INV, you can compare the effects of market volatilities on First Industrial 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 First Industrial with a short position of KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and KENEDIX OFFICE.
Diversification Opportunities for First Industrial and KENEDIX OFFICE
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and KENEDIX is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty 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 First Industrial 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 First Industrial Realty 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 First Industrial i.e., First Industrial and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between First Industrial and KENEDIX OFFICE
Assuming the 90 days horizon First Industrial Realty is expected to generate 0.91 times more return on investment than KENEDIX OFFICE. However, First Industrial Realty is 1.09 times less risky than KENEDIX OFFICE. It trades about 0.06 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about 0.01 per unit of risk. If you would invest 4,843 in First Industrial Realty on October 26, 2024 and sell it today you would earn a total of 207.00 from holding First Industrial Realty or generate 4.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
First Industrial Realty vs. KENEDIX OFFICE INV
Performance |
Timeline |
First Industrial Realty |
KENEDIX OFFICE INV |
First Industrial and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Industrial and KENEDIX OFFICE
The main advantage of trading using opposite First Industrial and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial 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.First Industrial vs. Hyatt Hotels | ||
First Industrial vs. InterContinental Hotels Group | ||
First Industrial vs. DALATA HOTEL | ||
First Industrial vs. PTT Global Chemical |
KENEDIX OFFICE vs. H2O Retailing | ||
KENEDIX OFFICE vs. REVO INSURANCE SPA | ||
KENEDIX OFFICE vs. SBI Insurance Group | ||
KENEDIX OFFICE vs. FAST RETAIL ADR |
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.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
CEOs Directory Screen CEOs from public companies around the world | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |