Correlation Between Kennedy-Wilson Holdings and Fifth Third

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kennedy-Wilson Holdings and Fifth Third 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 Holdings and Fifth Third 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 Fifth Third Bancorp, you can compare the effects of market volatilities on Kennedy-Wilson Holdings and Fifth Third 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 Holdings with a short position of Fifth Third. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy-Wilson Holdings and Fifth Third.

Diversification Opportunities for Kennedy-Wilson Holdings and Fifth Third

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Kennedy-Wilson and Fifth is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy-Wilson Holdings and Fifth Third Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fifth Third Bancorp and Kennedy-Wilson 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 Kennedy-Wilson Holdings are associated (or correlated) with Fifth Third. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fifth Third Bancorp has no effect on the direction of Kennedy-Wilson Holdings i.e., Kennedy-Wilson Holdings and Fifth Third go up and down completely randomly.

Pair Corralation between Kennedy-Wilson Holdings and Fifth Third

Allowing for the 90-day total investment horizon Kennedy-Wilson Holdings is expected to under-perform the Fifth Third. In addition to that, Kennedy-Wilson Holdings is 2.95 times more volatile than Fifth Third Bancorp. It trades about -0.22 of its total potential returns per unit of risk. Fifth Third Bancorp is currently generating about -0.2 per unit of volatility. If you would invest  2,454  in Fifth Third Bancorp on July 6, 2022 and sell it today you would lose (85.00)  from holding Fifth Third Bancorp or give up 3.46% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy95.24%
ValuesDaily Returns

Kennedy-Wilson Holdings  vs.  Fifth Third Bancorp

 Performance (%) 
       Timeline  
Kennedy-Wilson Holdings 
Kennedy-Wilson Performance
0 of 100
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 conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in November 2022. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Kennedy-Wilson Price Channel

Fifth Third Bancorp 
Fifth Performance
0 of 100
Over the last 90 days Fifth Third Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Fifth Third is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the insiders.

Fifth Price Channel

Kennedy-Wilson Holdings and Fifth Third Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kennedy-Wilson Holdings and Fifth Third

The main advantage of trading using opposite Kennedy-Wilson Holdings and Fifth Third positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy-Wilson Holdings position performs unexpectedly, Fifth Third 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 Fifth Third will offset losses from the drop in Fifth Third's long position.
Kennedy-Wilson Holdings vs. Amazon Inc
The idea behind Kennedy-Wilson Holdings and Fifth Third Bancorp 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.
Fifth Third vs. Amazon Inc
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 Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go