Correlation Between Kennedy Wilson and C3 Ai

Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson and C3 Ai 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 Kennedy Wilson and C3 Ai into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kennedy Wilson Holdings and C3 Ai Inc, you can compare the effects of market volatilities on Kennedy Wilson and C3 Ai 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 Kennedy Wilson with a short position of C3 Ai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and C3 Ai.

Diversification Opportunities for Kennedy Wilson and C3 Ai

-0.16

Correlation Coefficient

Kennedy Wilson  C3 Ai

Good diversification

The 3 months correlation between Kennedy and C3 Ai is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and C3 Ai Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3 Ai Inc and Kennedy Wilson 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 Kennedy Wilson Holdings are associated (or correlated) with C3 Ai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3 Ai Inc has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and C3 Ai go up and down completely randomly.

Pair Corralation between Kennedy Wilson and C3 Ai

Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to generate 0.97 times more return on investment than C3 Ai. However, Kennedy Wilson Holdings is 1.04 times less risky than C3 Ai. It trades about 0.16 of its potential returns per unit of risk. C3 Ai Inc is currently generating about -0.33 per unit of risk. If you would invest  781.00  in Kennedy Wilson Holdings on January 26, 2024 and sell it today you would earn a total of  68.00  from holding Kennedy Wilson Holdings or generate 8.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Kennedy Wilson Holdings  vs.  C3 Ai Inc

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 inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in May 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

C3 Ai Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C3 Ai Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, C3 Ai is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Kennedy Wilson and C3 Ai

The main advantage of trading using opposite Kennedy Wilson and C3 Ai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson position performs unexpectedly, C3 Ai 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 C3 Ai will offset losses from the drop in C3 Ai's long position.

The idea behind Kennedy Wilson Holdings and C3 Ai Inc 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.