Correlation Between Kennedy-Wilson Holdings and Shore Bancshares

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

Diversification Opportunities for Kennedy-Wilson Holdings and Shore Bancshares

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Kennedy-Wilson and Shore is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy-Wilson Holdings and Shore Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shore Bancshares 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 Shore Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shore Bancshares has no effect on the direction of Kennedy-Wilson Holdings i.e., Kennedy-Wilson Holdings and Shore Bancshares go up and down completely randomly.

Pair Corralation between Kennedy-Wilson Holdings and Shore Bancshares

Allowing for the 90-day total investment horizon Kennedy-Wilson Holdings is expected to under-perform the Shore Bancshares. In addition to that, Kennedy-Wilson Holdings is 2.96 times more volatile than Shore Bancshares. It trades about -0.2 of its total potential returns per unit of risk. Shore Bancshares is currently generating about -0.33 per unit of volatility. If you would invest  1,845  in Shore Bancshares on July 5, 2022 and sell it today you would lose (105.00)  from holding Shore Bancshares or give up 5.69% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy95.24%
ValuesDaily Returns

Kennedy-Wilson Holdings  vs.  Shore Bancshares

 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

Shore Bancshares 
Shore Performance
0 of 100
Over the last 90 days Shore Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Shore Price Channel

Kennedy-Wilson Holdings and Shore Bancshares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kennedy-Wilson Holdings and Shore Bancshares

The main advantage of trading using opposite Kennedy-Wilson Holdings and Shore Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy-Wilson Holdings position performs unexpectedly, Shore Bancshares 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 Shore Bancshares will offset losses from the drop in Shore Bancshares' long position.
Kennedy-Wilson Holdings vs. Amazon Inc
The idea behind Kennedy-Wilson Holdings and Shore Bancshares 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.
Shore Bancshares 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go