Correlation Between Cohen and Kennedy Wilson

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

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

Diversification Opportunities for Cohen and Kennedy Wilson

-0.12

Correlation Coefficient

Cohen  Kennedy Wilson

Good diversification

The 3 months correlation between Cohen and Kennedy is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and Kennedy Wilson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kennedy Wilson Holdings and Cohen 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 Cohen And Steers are associated (or correlated) with Kennedy Wilson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kennedy Wilson Holdings has no effect on the direction of Cohen i.e., Cohen and Kennedy Wilson go up and down completely randomly.

Pair Corralation between Cohen and Kennedy Wilson

Assuming the 90 days horizon Cohen And Steers is expected to under-perform the Kennedy Wilson. But the mutual fund apears to be less risky and, when comparing its historical volatility, Cohen And Steers is 1.75 times less risky than Kennedy Wilson. The mutual fund trades about -0.17 of its potential returns per unit of risk. The Kennedy Wilson Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  834.00  in Kennedy Wilson Holdings on February 2, 2024 and sell it today you would earn a total of  47.00  from holding Kennedy Wilson Holdings or generate 5.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Cohen And Steers  vs.  Kennedy Wilson Holdings

Cohen And Steers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen And Steers has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Cohen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 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.

Pair Trading with Cohen and Kennedy Wilson

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

The idea behind Cohen And Steers and Kennedy Wilson Holdings 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.