Correlation Between Smart REIT and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Smart REIT 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 Smart REIT and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart REIT and Kite Realty Group, you can compare the effects of market volatilities on Smart REIT 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 Smart REIT with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart REIT and Kite Realty.
Diversification Opportunities for Smart REIT and Kite Realty
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smart and Kite is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Smart REIT 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 Smart REIT 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 Smart REIT 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 Smart REIT i.e., Smart REIT and Kite Realty go up and down completely randomly.
Pair Corralation between Smart REIT and Kite Realty
Assuming the 90 days horizon Smart REIT is expected to under-perform the Kite Realty. In addition to that, Smart REIT is 1.19 times more volatile than Kite Realty Group. It trades about -0.11 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.13 per unit of volatility. If you would invest 2,599 in Kite Realty Group on August 28, 2024 and sell it today you would earn a total of 147.00 from holding Kite Realty Group or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart REIT vs. Kite Realty Group
Performance |
| Timeline |
| Smart REIT |
| Kite Realty Group |
Smart REIT and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart REIT and Kite Realty
The main advantage of trading using opposite Smart REIT and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart REIT 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.| Smart REIT vs. Phillips Edison Co | Smart REIT vs. Simon Property Group | Smart REIT vs. Inventrust Properties Corp | Smart REIT vs. Site Centers Corp |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |