Correlation Between Agree Realty and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Kimco Realty 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 Agree Realty and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Kimco Realty, you can compare the effects of market volatilities on Agree Realty and Kimco Realty 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 Agree Realty with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Kimco Realty.
Diversification Opportunities for Agree Realty and Kimco Realty
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agree and Kimco is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Agree Realty 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 Agree Realty are associated (or correlated) with Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Agree Realty i.e., Agree Realty and Kimco Realty go up and down completely randomly.
Pair Corralation between Agree Realty and Kimco Realty
Assuming the 90 days trading horizon Agree Realty is expected to generate 1.03 times more return on investment than Kimco Realty. However, Agree Realty is 1.03 times more volatile than Kimco Realty. It trades about 0.04 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.04 per unit of risk. If you would invest 1,545 in Agree Realty on August 26, 2024 and sell it today you would earn a total of 364.00 from holding Agree Realty or generate 23.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. Kimco Realty
Performance |
| Timeline |
| Agree Realty |
| Kimco Realty |
Agree Realty and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Kimco Realty
The main advantage of trading using opposite Agree Realty and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Kimco Realty 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 Kimco Realty will offset losses from the drop in Kimco Realty's long position.| Agree Realty vs. Vornado Realty Trust | Agree Realty vs. Rexford Industrial Realty | Agree Realty vs. Global Medical REIT | Agree Realty vs. Aquagold International |
| Kimco Realty vs. Saul Centers | Kimco Realty vs. Wheeler Real Estate | Kimco Realty vs. Macerich Company | Kimco Realty vs. Simon Property Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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