Correlation Between First Industrial and KENEDIX OFFICE

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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

FirstKENEDIXDiversified AwayFirstKENEDIXDiversified Away100%
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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

First Industrial Realty  vs.  KENEDIX OFFICE INV

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -6-4-2024
JavaScript chart by amCharts 3.21.15F5W K9R
       Timeline  
First Industrial Realty 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in First Industrial Realty are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, First Industrial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan4748495051
KENEDIX OFFICE INV 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in KENEDIX OFFICE INV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, KENEDIX OFFICE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan860870880890900910920930940

First Industrial and KENEDIX OFFICE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.51-3.38-2.25-1.11-0.01891.082.223.364.55.64 0.050.100.150.20
JavaScript chart by amCharts 3.21.15F5W K9R
       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.
The idea behind First Industrial Realty and KENEDIX OFFICE INV 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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