Correlation Between Killam Apartment and First Capital

Can any of the company-specific risk be diversified away by investing in both Killam Apartment and First Capital 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 First Capital 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 First Capital Real, you can compare the effects of market volatilities on Killam Apartment and First Capital 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 First Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Killam Apartment and First Capital.

Diversification Opportunities for Killam Apartment and First Capital

0.83

Correlation Coefficient

Killam Apartment  First Capital

Very poor diversification

The 3 months correlation between Killam and First is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Killam Apartment Real and First Capital Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Capital 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 First Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Capital Real has no effect on the direction of Killam Apartment i.e., Killam Apartment and First Capital go up and down completely randomly.

Pair Corralation between Killam Apartment and First Capital

Assuming the 90 days trading horizon Killam Apartment Real is expected to generate 1.42 times more return on investment than First Capital. However, Killam Apartment is 1.42 times more volatile than First Capital Real. It trades about 0.17 of its potential returns per unit of risk. First Capital Real is currently generating about 0.24 per unit of risk. If you would invest  1,668  in Killam Apartment Real on April 23, 2025 and sell it today you would earn a total of  248.00  from holding Killam Apartment Real or generate 14.87% return on investment over 90 days.

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

Killam Apartment Real  vs.  First Capital 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.

First Capital Real

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Capital Real are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, First Capital sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Killam Apartment and First Capital

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

The idea behind Killam Apartment Real and First Capital 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.