Correlation Between Ford and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Ford and Kimco 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 Ford and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Kimco Realty, you can compare the effects of market volatilities on Ford and Kimco 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 Ford with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Kimco Realty.
Diversification Opportunities for Ford and Kimco Realty
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ford and Kimco is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Ford 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 Ford Motor are associated (or correlated) with Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Ford i.e., Ford and Kimco Realty go up and down completely randomly.
Pair Corralation between Ford and Kimco Realty
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Kimco Realty. In addition to that, Ford is 2.45 times more volatile than Kimco Realty. It trades about -0.02 of its total potential returns per unit of risk. Kimco Realty is currently generating about -0.01 per unit of volatility. If you would invest 2,213 in Kimco Realty on November 4, 2024 and sell it today you would lose (65.00) from holding Kimco Realty or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Kimco Realty
Performance |
| Timeline |
| Ford Motor |
| Kimco Realty |
Ford and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Kimco Realty
The main advantage of trading using opposite Ford and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Kimco 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 Kimco Realty will offset losses from the drop in Kimco Realty's long position.The idea behind Ford Motor and Kimco Realty pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Saul Centers | Kimco Realty vs. Urban Edge Properties | Kimco Realty vs. Rithm Property 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |