Correlation Between Integral and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Integral 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 Integral and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Kite Realty Group, you can compare the effects of market volatilities on Integral 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 Integral with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Kite Realty.
Diversification Opportunities for Integral and Kite Realty
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integral and Kite is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science 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 Integral 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 Integral Ad Science 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 Integral i.e., Integral and Kite Realty go up and down completely randomly.
Pair Corralation between Integral and Kite Realty
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Kite Realty. In addition to that, Integral is 3.94 times more volatile than Kite Realty Group. It trades about -0.06 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.32 per unit of volatility. If you would invest 2,580 in Kite Realty Group on September 2, 2024 and sell it today you would earn a total of 177.00 from holding Kite Realty Group or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Kite Realty Group
Performance |
| Timeline |
| Integral Ad Science |
| Kite Realty Group |
Integral and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Kite Realty
The main advantage of trading using opposite Integral and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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.The idea behind Integral Ad Science and Kite Realty Group 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.| 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 Stocks Directory module to find actively traded stocks across global markets.
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