Correlation Between Canlan Ice and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Kite Realty Group, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Kite Realty.
Diversification Opportunities for Canlan Ice and Kite Realty
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Canlan and Kite is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports 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 Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Kite Realty go up and down completely randomly.
Pair Corralation between Canlan Ice and Kite Realty
Assuming the 90 days horizon Canlan Ice is expected to generate 9.07 times less return on investment than Kite Realty. But when comparing it to its historical volatility, Canlan Ice Sports is 12.04 times less risky than Kite Realty. It trades about 0.14 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,983 in Kite Realty Group on August 25, 2024 and sell it today you would earn a total of 757.00 from holding Kite Realty Group or generate 38.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Kite Realty Group
Performance |
| Timeline |
| Canlan Ice Sports |
| Kite Realty Group |
Canlan Ice and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Kite Realty
The main advantage of trading using opposite Canlan Ice and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. HUMANA INC | Canlan Ice vs. Aquagold International | Canlan Ice vs. Barloworld Ltd ADR | Canlan Ice vs. Morningstar Unconstrained Allocation |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. Inventrust Properties Corp | Kite Realty vs. Retail Opportunity Investments | Kite Realty vs. Netstreit Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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