Correlation Between Beyond Meat and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Beyond Meat 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 Beyond Meat and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Kite Realty Group, you can compare the effects of market volatilities on Beyond Meat 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 Beyond Meat with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Kite Realty.
Diversification Opportunities for Beyond Meat and Kite Realty
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beyond and Kite is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat 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 Beyond Meat 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 Beyond Meat 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 Beyond Meat i.e., Beyond Meat and Kite Realty go up and down completely randomly.
Pair Corralation between Beyond Meat and Kite Realty
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Kite Realty. In addition to that, Beyond Meat is 2.21 times more volatile than Kite Realty Group. It trades about -0.12 of its total potential returns per unit of risk. Kite Realty Group is currently generating about -0.24 per unit of volatility. If you would invest 2,422 in Kite Realty Group on November 28, 2024 and sell it today you would lose (202.00) from holding Kite Realty Group or give up 8.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. Kite Realty Group
Performance |
| Timeline |
| Beyond Meat |
| Kite Realty Group |
Beyond Meat and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Kite Realty
The main advantage of trading using opposite Beyond Meat and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat 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.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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