Correlation Between Alexander Baldwin and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Alexander Baldwin 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 Alexander Baldwin and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexander Baldwin Holdings and Kimco Realty, you can compare the effects of market volatilities on Alexander Baldwin 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 Alexander Baldwin with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexander Baldwin and Kimco Realty.
Diversification Opportunities for Alexander Baldwin and Kimco Realty
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alexander and Kimco is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Alexander Baldwin Holdings and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Alexander Baldwin 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 Alexander Baldwin Holdings 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 Alexander Baldwin i.e., Alexander Baldwin and Kimco Realty go up and down completely randomly.
Pair Corralation between Alexander Baldwin and Kimco Realty
Given the investment horizon of 90 days Alexander Baldwin Holdings is expected to generate 1.46 times more return on investment than Kimco Realty. However, Alexander Baldwin is 1.46 times more volatile than Kimco Realty. It trades about 0.13 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.09 per unit of risk. If you would invest 1,647 in Alexander Baldwin Holdings on September 1, 2024 and sell it today you would earn a total of 331.00 from holding Alexander Baldwin Holdings or generate 20.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alexander Baldwin Holdings vs. Kimco Realty
Performance |
| Timeline |
| Alexander Baldwin |
| Kimco Realty |
Alexander Baldwin and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexander Baldwin and Kimco Realty
The main advantage of trading using opposite Alexander Baldwin and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexander Baldwin 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.| Alexander Baldwin vs. Saul Centers | Alexander Baldwin vs. Urban Edge Properties | Alexander Baldwin vs. Site Centers Corp | Alexander Baldwin vs. Kite Realty Group |
| Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Saul Centers | Kimco Realty vs. Kimco Realty | 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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