Correlation Between Armada Hflr and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Kimco Realty, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Kimco Realty.
Diversification Opportunities for Armada Hflr and Kimco Realty
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Armada and Kimco is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Kimco Realty go up and down completely randomly.
Pair Corralation between Armada Hflr and Kimco Realty
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Kimco Realty. In addition to that, Armada Hflr is 1.93 times more volatile than Kimco Realty. It trades about -0.26 of its total potential returns per unit of risk. Kimco Realty is currently generating about -0.14 per unit of volatility. If you would invest 6,061 in Kimco Realty on December 3, 2024 and sell it today you would lose (83.00) from holding Kimco Realty or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Armada Hflr Pr vs. Kimco Realty
Performance |
| Timeline |
| Armada Hflr Pr |
| Kimco Realty |
Armada Hflr and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Kimco Realty
The main advantage of trading using opposite Armada Hflr and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| Kimco Realty vs. Copa Holdings SA | Kimco Realty vs. Western Digital | Kimco Realty vs. KNOT Offshore Partners | Kimco Realty vs. FARO Technologies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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