Correlation Between Klépierre and British Land

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

By analyzing existing cross correlation between Klpierre SA and British Land, you can compare the effects of market volatilities on Klépierre and British Land 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 Klépierre with a short position of British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klépierre and British Land.

Diversification Opportunities for Klépierre and British Land

0.52

Correlation Coefficient

Klépierre  British Land

Very weak diversification

The 3 months correlation between Klépierre and British is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Klpierre SA and British Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land and Klépierre 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 Klpierre SA are associated (or correlated) with British Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British Land has no effect on the direction of Klépierre i.e., Klépierre and British Land go up and down completely randomly.

Pair Corralation between Klépierre and British Land

Assuming the 90 days horizon Klpierre SA is expected to generate 1.32 times more return on investment than British Land. However, Klépierre is 1.32 times more volatile than British Land. It trades about 0.14 of its potential returns per unit of risk. British Land is currently generating about 0.09 per unit of risk. If you would invest  2,811  in Klpierre SA on December 30, 2024 and sell it today you would earn a total of  527.00  from holding Klpierre SA or generate 18.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Klpierre SA  vs.  British Land

Klpierre SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Klpierre SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Klépierre reported solid returns over the last few months and may actually be approaching a breakup point.

British Land

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in British Land are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, British Land may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Klépierre and British Land

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

The idea behind Klpierre SA and British Land 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.