Correlation Between Aquagold International and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Kimco Realty, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Kimco Realty.
Diversification Opportunities for Aquagold International and Kimco Realty
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aquagold and Kimco is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Aquagold International 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 Aquagold International 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 Aquagold International i.e., Aquagold International and Kimco Realty go up and down completely randomly.
Pair Corralation between Aquagold International and Kimco Realty
Given the investment horizon of 90 days Aquagold International is expected to generate 46.89 times more return on investment than Kimco Realty. However, Aquagold International is 46.89 times more volatile than Kimco Realty. It trades about 0.05 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.02 per unit of risk. If you would invest 12.00 in Aquagold International on November 2, 2024 and sell it today you would lose (11.96) from holding Aquagold International or give up 99.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aquagold International vs. Kimco Realty
Performance |
| Timeline |
| Aquagold International |
| Kimco Realty |
Aquagold International and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Kimco Realty
The main advantage of trading using opposite Aquagold International and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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