Correlation Between Choice Properties and Klépierre

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

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

Diversification Opportunities for Choice Properties and Klépierre

0.49

Correlation Coefficient

Choice Properties  Klépierre

Very weak diversification

The 3 months correlation between Choice and Klépierre is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Choice Properties Real and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA and Choice 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 Choice Properties Real are associated (or correlated) with Klépierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of Choice Properties i.e., Choice Properties and Klépierre go up and down completely randomly.

Pair Corralation between Choice Properties and Klépierre

Assuming the 90 days horizon Choice Properties Real is expected to generate 2.21 times more return on investment than Klépierre. However, Choice Properties is 2.21 times more volatile than Klpierre SA. It trades about 0.16 of its potential returns per unit of risk. Klpierre SA is currently generating about 0.14 per unit of risk. If you would invest  690.00  in Choice Properties Real on December 29, 2024 and sell it today you would earn a total of  280.00  from holding Choice Properties Real or generate 40.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	88.71%
Values	Daily Returns

Choice Properties Real  vs.  Klpierre SA

Choice Properties Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Choice Properties Real are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Choice Properties reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Choice Properties and Klépierre

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

The idea behind Choice Properties Real and Klpierre SA 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.