Correlation Between KE Holdings and Park City

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Can any of the company-specific risk be diversified away by investing in both KE Holdings and Park City 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 KE Holdings and Park City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KE Holdings and Park City Group, you can compare the effects of market volatilities on KE Holdings and Park City 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 KE Holdings with a short position of Park City. Check out your portfolio center. Please also check ongoing floating volatility patterns of KE Holdings and Park City.

Diversification Opportunities for KE Holdings and Park City

  Correlation Coefficient

Average diversification

The 3 months correlation between KE Holdings and Park City is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding KE Holdings Inc and Park City Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park City Group and KE Holdings 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 KE Holdings are associated (or correlated) with Park City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park City Group has no effect on the direction of KE Holdings i.e., KE Holdings and Park City go up and down completely randomly.

Pair Corralation between KE Holdings and Park City

Given the investment horizon of 90 days KE Holdings is expected to under-perform the Park City. In addition to that, KE Holdings is 1.72 times more volatile than Park City Group. It trades about -0.01 of its total potential returns per unit of risk. Park City Group is currently generating about 0.02 per unit of volatility. If you would invest  518.00  in Park City Group on June 26, 2022 and sell it today you would earn a total of  62.00  from holding Park City Group or generate 11.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

KE Holdings Inc  vs.  Park City Group

 Performance (%) 
KE Holdings 
KE Holdings Performance
0 of 100
Over the last 90 days KE Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, KE Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

KE Holdings Price Channel

Park City Group 
Park City Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Park City Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Park City exhibited solid returns over the last few months and may actually be approaching a breakup point.

Park City Price Channel

KE Holdings and Park City Volatility Contrast

   Predicted Return Density   

Pair Trading with KE Holdings and Park City

The main advantage of trading using opposite KE Holdings and Park City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KE Holdings position performs unexpectedly, Park City 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 Park City will offset losses from the drop in Park City's long position.
KE Holdings vs. Industrias Bachoco SA
The idea behind KE Holdings and Park City Group 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.
Park City vs. Industrias Bachoco SA
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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