Correlation Between Kennedy Wilson and Ambase Corp

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

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

Diversification Opportunities for Kennedy Wilson and Ambase Corp

0.48

Correlation Coefficient

Kennedy Wilson  Ambase Corp

Very weak diversification

The 3 months correlation between Kennedy and Ambase is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and Ambase Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambase Corp and Kennedy Wilson 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 Kennedy Wilson Holdings are associated (or correlated) with Ambase Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambase Corp has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and Ambase Corp go up and down completely randomly.

Pair Corralation between Kennedy Wilson and Ambase Corp

Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Ambase Corp. But the stock apears to be less risky and, when comparing its historical volatility, Kennedy Wilson Holdings is 1.13 times less risky than Ambase Corp. The stock trades about -0.56 of its potential returns per unit of risk. The Ambase Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  31.00  in Ambase Corp on October 15, 2024 and sell it today you would earn a total of  0.00  from holding Ambase Corp or generate 0.0% return on investment over 90 days.

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

Kennedy Wilson Holdings  vs.  Ambase Corp

Kennedy Wilson Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kennedy Wilson Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Ambase Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ambase Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Kennedy Wilson and Ambase Corp

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

The idea behind Kennedy Wilson Holdings and Ambase Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.