Correlation Between Kenon Holdings and OS Therapies

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

By analyzing existing cross correlation between Kenon Holdings and OS Therapies Incorporated, you can compare the effects of market volatilities on Kenon Holdings and OS Therapies 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 Kenon Holdings with a short position of OS Therapies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and OS Therapies.

Diversification Opportunities for Kenon Holdings and OS Therapies

-0.22

Correlation Coefficient

Kenon Holdings  OS Therapies

Very good diversification

The 3 months correlation between Kenon and OSTX is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and OS Therapies Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OS Therapies and Kenon 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 Kenon Holdings are associated (or correlated) with OS Therapies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OS Therapies has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and OS Therapies go up and down completely randomly.

Pair Corralation between Kenon Holdings and OS Therapies

Considering the 90-day investment horizon Kenon Holdings is expected to generate 0.25 times more return on investment than OS Therapies. However, Kenon Holdings is 3.98 times less risky than OS Therapies. It trades about 0.15 of its potential returns per unit of risk. OS Therapies Incorporated is currently generating about -0.13 per unit of risk. 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	100.0%
Values	Daily Returns

Kenon Holdings  vs.  OS Therapies Incorporated

Kenon Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kenon Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Kenon Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

OS Therapies

Risk-Adjusted Performance

Very Weak

Over the last 90 days OS Therapies Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Kenon Holdings and OS Therapies

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

The idea behind Kenon Holdings and OS Therapies Incorporated 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.