Correlation Between Kennedy Wilson and Tuxis

Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and Tuxis 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 Tuxis 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 Tuxis, you can compare the effects of market volatilities on Kennedy Wilson and Tuxis 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 Tuxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and Tuxis.

Diversification Opportunities for Kennedy Wilson and Tuxis

0.0

Correlation Coefficient

Kennedy Wilson  Tuxis

Pay attention - limited upside

The 3 months correlation between Kennedy and Tuxis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and Tuxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuxis 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 Tuxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuxis has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and Tuxis go up and down completely randomly.

Pair Corralation between Kennedy Wilson and Tuxis

If you would invest (100.00) in Tuxis on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Tuxis or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kennedy Wilson Holdings  vs.  Tuxis

Kennedy Wilson Holdings

Risk-Adjusted Performance

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 latest inconsistent performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Tuxis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tuxis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tuxis is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kennedy Wilson and Tuxis

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

The idea behind Kennedy Wilson Holdings and Tuxis 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.