Correlation Between Kerry Properties and Adkins Energy

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

By analyzing existing cross correlation between Kerry Properties Ltd and Adkins Energy LLC, you can compare the effects of market volatilities on Kerry Properties and Adkins Energy 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 Kerry Properties with a short position of Adkins Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerry Properties and Adkins Energy.

Diversification Opportunities for Kerry Properties and Adkins Energy

0.48

Correlation Coefficient

Kerry Properties  Adkins Energy

Very weak diversification

The 3 months correlation between Kerry and Adkins is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kerry Properties Ltd and Adkins Energy LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adkins Energy LLC and Kerry 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 Kerry Properties Ltd are associated (or correlated) with Adkins Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adkins Energy LLC has no effect on the direction of Kerry Properties i.e., Kerry Properties and Adkins Energy go up and down completely randomly.

Pair Corralation between Kerry Properties and Adkins Energy

If you would invest  875.00  in Kerry Properties Ltd on January 26, 2024 and sell it today you would earn a total of  49.00  from holding Kerry Properties Ltd or generate 5.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Kerry Properties Ltd  vs.  Adkins Energy LLC

Kerry Properties

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kerry Properties Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Kerry Properties may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Adkins Energy LLC

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Adkins Energy LLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward indicators, Adkins Energy may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Kerry Properties and Adkins Energy

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

The idea behind Kerry Properties Ltd and Adkins Energy LLC 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.