Correlation Between Kennedy Wilson and Fidelity Series

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

Diversification Opportunities for Kennedy Wilson and Fidelity Series

-0.76

Correlation Coefficient

Kennedy Wilson  Fidelity Series

Pay attention - limited upside

The 3 months correlation between Kennedy and Fidelity is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and Fidelity Series Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Real 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 Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Real has no effect on the direction of Kennedy Wilson i.e., Kennedy Wilson and Fidelity Series go up and down completely randomly.

Pair Corralation between Kennedy Wilson and Fidelity Series

Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Fidelity Series. In addition to that, Kennedy Wilson is 5.69 times more volatile than Fidelity Series Real. It trades about -0.05 of its total potential returns per unit of risk. Fidelity Series Real is currently generating about 0.03 per unit of volatility. If you would invest  911.00  in Fidelity Series Real on January 31, 2024 and sell it today you would earn a total of  51.00  from holding Fidelity Series Real or generate 5.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Kennedy Wilson Holdings  vs.  Fidelity Series Real

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 weak 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.

Fidelity Series Real

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Series Real are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Fidelity Series is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kennedy Wilson and Fidelity Series

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

The idea behind Kennedy Wilson Holdings and Fidelity Series 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.

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.