Correlation Between Urban Outfitters and KKR REAL
Can any of the company-specific risk be diversified away by investing in both Urban Outfitters and KKR REAL 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 Urban Outfitters and KKR REAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Outfitters and KKR REAL ESTFINTR, you can compare the effects of market volatilities on Urban Outfitters and KKR REAL 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 Urban Outfitters with a short position of KKR REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Outfitters and KKR REAL.
Diversification Opportunities for Urban Outfitters and KKR REAL
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Urban and KKR is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Urban Outfitters and KKR REAL ESTFINTR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR REAL ESTFINTR and Urban Outfitters 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 Urban Outfitters are associated (or correlated) with KKR REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR REAL ESTFINTR has no effect on the direction of Urban Outfitters i.e., Urban Outfitters and KKR REAL go up and down completely randomly.
Pair Corralation between Urban Outfitters and KKR REAL
Assuming the 90 days horizon Urban Outfitters is expected to under-perform the KKR REAL. In addition to that, Urban Outfitters is 1.64 times more volatile than KKR REAL ESTFINTR. It trades about -0.06 of its total potential returns per unit of risk. KKR REAL ESTFINTR is currently generating about 0.0 per unit of volatility. If you would invest 1,003 in KKR REAL ESTFINTR on December 18, 2024 and sell it today you would lose (8.00) from holding KKR REAL ESTFINTR or give up 0.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Urban Outfitters vs. KKR REAL ESTFINTR
Performance |
Timeline |
Urban Outfitters |
KKR REAL ESTFINTR |
Urban Outfitters and KKR REAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Urban Outfitters and KKR REAL
The main advantage of trading using opposite Urban Outfitters and KKR REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Outfitters position performs unexpectedly, KKR REAL 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 KKR REAL will offset losses from the drop in KKR REAL's long position.Urban Outfitters vs. Vishay Intertechnology | Urban Outfitters vs. Solstad Offshore ASA | Urban Outfitters vs. Grupo Carso SAB | Urban Outfitters vs. CSSC Offshore Marine |
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Check out your portfolio center.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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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