Correlation Between Killam Apartment and Choice Properties

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

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

Diversification Opportunities for Killam Apartment and Choice Properties

0.58

Correlation Coefficient

Killam Apartment  Choice Properties

Very weak diversification

The 3 months correlation between Killam and Choice is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Killam Apartment Real and Choice Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Properties Real and Killam Apartment 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 Killam Apartment Real are associated (or correlated) with Choice Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Properties Real has no effect on the direction of Killam Apartment i.e., Killam Apartment and Choice Properties go up and down completely randomly.

Pair Corralation between Killam Apartment and Choice Properties

Assuming the 90 days trading horizon Killam Apartment Real is expected to generate 1.5 times more return on investment than Choice Properties. However, Killam Apartment is 1.5 times more volatile than Choice Properties Real. It trades about 0.17 of its potential returns per unit of risk. Choice Properties Real is currently generating about 0.05 per unit of risk. If you would invest  1,655  in Killam Apartment Real on April 20, 2025 and sell it today you would earn a total of  246.00  from holding Killam Apartment Real or generate 14.86% return on investment over 90 days.

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

Killam Apartment Real  vs.  Choice Properties Real

Killam Apartment Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Killam Apartment Real are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Killam Apartment sustained solid returns over the last few months and may actually be approaching a breakup point.

Choice Properties Real

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Choice Properties Real are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Choice Properties is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Killam Apartment and Choice Properties

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

The idea behind Killam Apartment Real and Choice Properties Real 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.