Correlation Between Kelly Services and Net Lease

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

Diversification Opportunities for Kelly Services and Net Lease

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Kelly and Net is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services B and Net Lease Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Net Lease Office and Kelly Services 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 Kelly Services B are associated (or correlated) with Net Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Net Lease Office has no effect on the direction of Kelly Services i.e., Kelly Services and Net Lease go up and down completely randomly.

Pair Corralation between Kelly Services and Net Lease

Assuming the 90 days horizon Kelly Services B is expected to under-perform the Net Lease. In addition to that, Kelly Services is 3.33 times more volatile than Net Lease Office. It trades about -0.24 of its total potential returns per unit of risk. Net Lease Office is currently generating about 0.03 per unit of volatility. If you would invest  2,910  in Net Lease Office on September 1, 2025 and sell it today you would earn a total of  39.00  from holding Net Lease Office or generate 1.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kelly Services B  vs.  Net Lease Office

 Performance 
       Timeline  
Kelly Services B 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Kelly Services B has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Net Lease Office 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Net Lease Office are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Net Lease is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Kelly Services and Net Lease Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kelly Services and Net Lease

The main advantage of trading using opposite Kelly Services and Net Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services position performs unexpectedly, Net Lease 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 Net Lease will offset losses from the drop in Net Lease's long position.
The idea behind Kelly Services B and Net Lease Office 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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