Correlation Between Agree Realty and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Kite 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 Kite 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 Kite Realty Group, you can compare the effects of market volatilities on Agree Realty and Kite 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 Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Kite Realty.
Diversification Opportunities for Agree Realty and Kite Realty
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agree and Kite is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group 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 Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Agree Realty i.e., Agree Realty and Kite Realty go up and down completely randomly.
Pair Corralation between Agree Realty and Kite Realty
Considering the 90-day investment horizon Agree Realty is expected to generate 2.0 times less return on investment than Kite Realty. But when comparing it to its historical volatility, Agree Realty is 1.06 times less risky than Kite Realty. It trades about 0.17 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,582 in Kite Realty Group on August 29, 2024 and sell it today you would earn a total of 198.00 from holding Kite Realty Group or generate 7.67% 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. Kite Realty Group
Performance |
| Timeline |
| Agree Realty |
| Kite Realty Group |
Agree Realty and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Kite Realty
The main advantage of trading using opposite Agree Realty and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Kite 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 Kite Realty will offset losses from the drop in Kite Realty's long position.| Agree Realty vs. CBL Associates Properties | Agree Realty vs. Cedar Realty Trust | Agree Realty vs. Simon Property Group | Agree Realty vs. Realty Income |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty Trust |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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