Correlation Between Corporate Office and KTL GLOBAL

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

By analyzing existing cross correlation between Corporate Office Properties and KTL GLOBAL, you can compare the effects of market volatilities on Corporate Office and KTL GLOBAL 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 Corporate Office with a short position of KTL GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and KTL GLOBAL.

Diversification Opportunities for Corporate Office and KTL GLOBAL

0.0

Correlation Coefficient

Corporate Office  KTL GLOBAL

Pay attention - limited upside

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

Pair Corralation between Corporate Office and KTL GLOBAL

If you would invest  2,158  in Corporate Office Properties on December 2, 2024 and sell it today you would earn a total of  422.00  from holding Corporate Office Properties or generate 19.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.73%
Values	Daily Returns

Corporate Office Properties  vs.  KTL GLOBAL

Corporate Office Pro

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corporate Office Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

KTL GLOBAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days KTL GLOBAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, KTL GLOBAL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Corporate Office and KTL GLOBAL

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

The idea behind Corporate Office Properties and KTL GLOBAL 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.