Correlation Between PT Bank and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both PT Bank 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 PT Bank and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and Kimco Realty, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Kimco Realty.
Diversification Opportunities for PT Bank and Kimco Realty
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BYRA and Kimco is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and PT Bank 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 PT Bank Rakyat 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 PT Bank i.e., PT Bank and Kimco Realty go up and down completely randomly.
Pair Corralation between PT Bank and Kimco Realty
Assuming the 90 days trading horizon PT Bank Rakyat is expected to under-perform the Kimco Realty. In addition to that, PT Bank is 3.08 times more volatile than Kimco Realty. It trades about -0.2 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.64 per unit of volatility. If you would invest 2,160 in Kimco Realty on September 1, 2024 and sell it today you would earn a total of 260.00 from holding Kimco Realty or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Bank Rakyat vs. Kimco Realty
Performance |
| Timeline |
| PT Bank Rakyat |
| Kimco Realty |
PT Bank and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Kimco Realty
The main advantage of trading using opposite PT Bank and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.The idea behind PT Bank Rakyat and Kimco Realty pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kimco Realty vs. Live Nation Entertainment | Kimco Realty vs. CITY OFFICE REIT | Kimco Realty vs. Flutter Entertainment PLC | Kimco Realty vs. PARKEN Sport Entertainment |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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