Correlation Between Kilroy Realty and Meet Kevin

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

By analyzing existing cross correlation between Kilroy Realty Corp and The Meet Kevin, you can compare the effects of market volatilities on Kilroy Realty and Meet Kevin 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 Kilroy Realty with a short position of Meet Kevin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilroy Realty and Meet Kevin.

Diversification Opportunities for Kilroy Realty and Meet Kevin

0.39

Correlation Coefficient

Kilroy Realty  Meet Kevin

Weak diversification

The 3 months correlation between Kilroy and Meet is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kilroy Realty Corp and The Meet Kevin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meet Kevin and Kilroy Realty 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 Kilroy Realty Corp are associated (or correlated) with Meet Kevin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meet Kevin has no effect on the direction of Kilroy Realty i.e., Kilroy Realty and Meet Kevin go up and down completely randomly.

Pair Corralation between Kilroy Realty and Meet Kevin

Considering the 90-day investment horizon Kilroy Realty Corp is expected to under-perform the Meet Kevin. In addition to that, Kilroy Realty is 1.73 times more volatile than The Meet Kevin. It trades about -0.12 of its total potential returns per unit of risk. The Meet Kevin is currently generating about -0.01 per unit of volatility. If you would invest  2,630  in The Meet Kevin on December 26, 2024 and sell it today you would lose (20.00) from holding The Meet Kevin or give up 0.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	73.33%
Values	Daily Returns

Kilroy Realty Corp  vs.  The Meet Kevin

Kilroy Realty Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kilroy Realty Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Meet Kevin

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Meet Kevin has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Meet Kevin is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Kilroy Realty and Meet Kevin

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

The idea behind Kilroy Realty Corp and The Meet Kevin 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.