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
Considering the 90-day investment horizon Agree Realty is expected to generate 1.76 times less return on investment than Kimco Realty. But when comparing it to its historical volatility, Agree Realty is 1.34 times less risky than Kimco Realty. It trades about 0.05 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,805 in Kimco Realty on August 24, 2024 and sell it today you would earn a total of 732.00 from holding Kimco Realty or generate 40.55% 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. Federal Realty Investment | Agree Realty vs. Tanger Factory Outlet | Agree Realty vs. Netstreit Corp | Agree Realty vs. Getty Realty |
| Kimco Realty vs. Federal Realty Investment | Kimco Realty vs. Agree Realty | Kimco Realty vs. Tanger Factory Outlet | Kimco Realty vs. Netstreit Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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