Correlation Between Vicinity Centres and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Vicinity Centres 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 Vicinity Centres and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vicinity Centres and Kimco Realty, you can compare the effects of market volatilities on Vicinity Centres 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 Vicinity Centres with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vicinity Centres and Kimco Realty.
Diversification Opportunities for Vicinity Centres and Kimco Realty
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vicinity and Kimco is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vicinity Centres and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Vicinity Centres 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 Vicinity Centres 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 Vicinity Centres i.e., Vicinity Centres and Kimco Realty go up and down completely randomly.
Pair Corralation between Vicinity Centres and Kimco Realty
Assuming the 90 days horizon Vicinity Centres is expected to generate 1.02 times less return on investment than Kimco Realty. In addition to that, Vicinity Centres is 1.04 times more volatile than Kimco Realty. It trades about 0.04 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.04 per unit of volatility. If you would invest 1,879 in Kimco Realty on August 29, 2024 and sell it today you would earn a total of 521.00 from holding Kimco Realty or generate 27.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vicinity Centres vs. Kimco Realty
Performance |
| Timeline |
| Vicinity Centres |
| Kimco Realty |
Vicinity Centres and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vicinity Centres and Kimco Realty
The main advantage of trading using opposite Vicinity Centres and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vicinity Centres 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.| Vicinity Centres vs. Commercial Vehicle Group | Vicinity Centres vs. SENECA FOODS A | Vicinity Centres vs. Infrastrutture Wireless Italiane | Vicinity Centres vs. Beyond Meat |
| Kimco Realty vs. DFS Furniture PLC | Kimco Realty vs. Pembina Pipeline Corp | Kimco Realty vs. British American Tobacco | Kimco Realty vs. Japan Tobacco |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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