Correlation Between Kmc Properties and HAV Group

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

By analyzing existing cross correlation between Kmc Properties ASA and HAV Group ASA, you can compare the effects of market volatilities on Kmc Properties and HAV Group 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 Kmc Properties with a short position of HAV Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kmc Properties and HAV Group.

Diversification Opportunities for Kmc Properties and HAV Group

-0.19

Correlation Coefficient

Kmc Properties  HAV Group

Good diversification

The 3 months correlation between Kmc and HAV is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kmc Properties ASA and HAV Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAV Group ASA and Kmc Properties 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 Kmc Properties ASA are associated (or correlated) with HAV Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAV Group ASA has no effect on the direction of Kmc Properties i.e., Kmc Properties and HAV Group go up and down completely randomly.

Pair Corralation between Kmc Properties and HAV Group

Assuming the 90 days trading horizon Kmc Properties ASA is expected to generate 5.05 times more return on investment than HAV Group. However, Kmc Properties is 5.05 times more volatile than HAV Group ASA. It trades about 0.01 of its potential returns per unit of risk. HAV Group ASA is currently generating about -0.05 per unit of risk. If you would invest  562.00  in Kmc Properties ASA on November 20, 2024 and sell it today you would lose (556.38) from holding Kmc Properties ASA or give up 99.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.74%
Values	Daily Returns

Kmc Properties ASA  vs.  HAV Group ASA

Kmc Properties ASA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kmc Properties ASA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, Kmc Properties disclosed solid returns over the last few months and may actually be approaching a breakup point.

HAV Group ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days HAV Group ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Kmc Properties and HAV Group

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

The idea behind Kmc Properties ASA and HAV Group ASA 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.