Correlation Between China Changjiang and Kite Realty
Can any of the company-specific risk be diversified away by investing in both China Changjiang 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 China Changjiang and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Changjiang Mining and Kite Realty Group, you can compare the effects of market volatilities on China Changjiang 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 China Changjiang with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Changjiang and Kite Realty.
Diversification Opportunities for China Changjiang and Kite Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Kite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Changjiang Mining 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 China Changjiang 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 China Changjiang Mining 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 China Changjiang i.e., China Changjiang and Kite Realty go up and down completely randomly.
Pair Corralation between China Changjiang and Kite Realty
Given the investment horizon of 90 days China Changjiang Mining is expected to generate 35.54 times more return on investment than Kite Realty. However, China Changjiang is 35.54 times more volatile than Kite Realty Group. It trades about 0.07 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.05 per unit of risk. If you would invest 13.00 in China Changjiang Mining on September 12, 2024 and sell it today you would lose (10.23) from holding China Changjiang Mining or give up 78.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Changjiang Mining vs. Kite Realty Group
Performance |
| Timeline |
| China Changjiang Mining |
| Kite Realty Group |
China Changjiang and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Changjiang and Kite Realty
The main advantage of trading using opposite China Changjiang and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Changjiang 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.| China Changjiang vs. Kite Realty Group | China Changjiang vs. Titan Machinery | China Changjiang vs. Verra Mobility Corp | China Changjiang vs. Mesa Air Group |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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