Correlation Between CBL Associates and Kite Realty
Can any of the company-specific risk be diversified away by investing in both CBL Associates 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 CBL Associates and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Kite Realty Group, you can compare the effects of market volatilities on CBL Associates 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 CBL Associates with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Kite Realty.
Diversification Opportunities for CBL Associates and Kite Realty
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CBL and Kite is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties 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 CBL Associates 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 CBL Associates Properties 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 CBL Associates i.e., CBL Associates and Kite Realty go up and down completely randomly.
Pair Corralation between CBL Associates and Kite Realty
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 1.06 times more return on investment than Kite Realty. However, CBL Associates is 1.06 times more volatile than Kite Realty Group. It trades about 0.22 of its potential returns per unit of risk. Kite Realty Group is currently generating about -0.18 per unit of risk. If you would invest 2,679 in CBL Associates Properties on November 18, 2024 and sell it today you would earn a total of 623.00 from holding CBL Associates Properties or generate 23.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Kite Realty Group
Performance |
| Timeline |
| CBL Associates Properties |
| Kite Realty Group |
CBL Associates and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Kite Realty
The main advantage of trading using opposite CBL Associates and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates 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.| CBL Associates vs. Kite Realty Group | CBL Associates vs. Site Centers Corp | CBL Associates vs. Urban Edge Properties | CBL Associates vs. Acadia Realty Trust |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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