Correlation Between Employers Holdings and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Employers Holdings 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 Employers Holdings and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Employers Holdings and Kite Realty Group, you can compare the effects of market volatilities on Employers Holdings 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 Employers Holdings with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and Kite Realty.
Diversification Opportunities for Employers Holdings and Kite Realty
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Employers and Kite is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings 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 Employers Holdings 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 Employers Holdings 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 Employers Holdings i.e., Employers Holdings and Kite Realty go up and down completely randomly.
Pair Corralation between Employers Holdings and Kite Realty
Considering the 90-day investment horizon Employers Holdings is expected to generate 1.3 times less return on investment than Kite Realty. But when comparing it to its historical volatility, Employers Holdings is 1.09 times less risky than Kite Realty. It trades about 0.05 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,888 in Kite Realty Group on August 31, 2024 and sell it today you would earn a total of 897.00 from holding Kite Realty Group or generate 47.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Employers Holdings vs. Kite Realty Group
Performance |
| Timeline |
| Employers Holdings |
| Kite Realty Group |
Employers Holdings and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and Kite Realty
The main advantage of trading using opposite Employers Holdings and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings 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.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |