Correlation Between AMCON Distributing and Kite Realty
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Kite Realty Group, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Kite Realty.
Diversification Opportunities for AMCON Distributing and Kite Realty
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMCON and Kite is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and Kite Realty go up and down completely randomly.
Pair Corralation between AMCON Distributing and Kite Realty
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Kite Realty. In addition to that, AMCON Distributing is 5.13 times more volatile than Kite Realty Group. It trades about -0.02 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.33 per unit of volatility. If you would invest 2,582 in Kite Realty Group on August 29, 2024 and sell it today you would earn a total of 198.00 from holding Kite Realty Group or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Kite Realty Group
Performance |
| Timeline |
| AMCON Distributing |
| Kite Realty Group |
AMCON Distributing and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Kite Realty
The main advantage of trading using opposite AMCON Distributing and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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