Correlation Between CVW CleanTech and Kite Realty
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech 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 CVW CleanTech and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and Kite Realty Group, you can compare the effects of market volatilities on CVW CleanTech 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 CVW CleanTech with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and Kite Realty.
Diversification Opportunities for CVW CleanTech and Kite Realty
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between CVW and Kite is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech i.e., CVW CleanTech and Kite Realty go up and down completely randomly.
Pair Corralation between CVW CleanTech and Kite Realty
Assuming the 90 days horizon CVW CleanTech is expected to generate 1.25 times less return on investment than Kite Realty. But when comparing it to its historical volatility, CVW CleanTech is 1.28 times less risky than Kite Realty. It trades about 0.3 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,582 in Kite Realty Group on August 28, 2024 and sell it today you would earn a total of 164.00 from holding Kite Realty Group or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVW CleanTech vs. Kite Realty Group
Performance |
| Timeline |
| CVW CleanTech |
| Kite Realty Group |
CVW CleanTech and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CleanTech and Kite Realty
The main advantage of trading using opposite CVW CleanTech and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech 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.| CVW CleanTech vs. Legacy Education | CVW CleanTech vs. NVIDIA | CVW CleanTech vs. Apple Inc | CVW CleanTech vs. Microsoft |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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