Correlation Between Acadia Realty and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Acadia 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 Acadia 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 Acadia Realty Trust and Kimco Realty, you can compare the effects of market volatilities on Acadia 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 Acadia Realty with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Kimco Realty.
Diversification Opportunities for Acadia Realty and Kimco Realty
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acadia and Kimco is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Acadia 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 Acadia Realty Trust 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 Acadia Realty i.e., Acadia Realty and Kimco Realty go up and down completely randomly.
Pair Corralation between Acadia Realty and Kimco Realty
Considering the 90-day investment horizon Acadia Realty Trust is expected to generate 0.97 times more return on investment than Kimco Realty. However, Acadia Realty Trust is 1.03 times less risky than Kimco Realty. It trades about 0.31 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.24 per unit of risk. If you would invest 1,606 in Acadia Realty Trust on August 24, 2024 and sell it today you would earn a total of 894.00 from holding Acadia Realty Trust or generate 55.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Kimco Realty
Performance |
| Timeline |
| Acadia Realty Trust |
| Kimco Realty |
Acadia Realty and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Kimco Realty
The main advantage of trading using opposite Acadia Realty and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia 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.| Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Retail Opportunity Investments |
| Kimco Realty vs. Site Centers Corp | Kimco Realty vs. CBL Associates Properties | Kimco Realty vs. Urban Edge Properties | Kimco 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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