Correlation Between Inventrust Properties and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties 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 Inventrust Properties and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventrust Properties Corp and Kite Realty Group, you can compare the effects of market volatilities on Inventrust Properties 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 Inventrust Properties with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Kite Realty.
Diversification Opportunities for Inventrust Properties and Kite Realty
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inventrust and Kite is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp 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 Inventrust Properties 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 Inventrust Properties Corp 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 Inventrust Properties i.e., Inventrust Properties and Kite Realty go up and down completely randomly.
Pair Corralation between Inventrust Properties and Kite Realty
Considering the 90-day investment horizon Inventrust Properties is expected to generate 1.04 times less return on investment than Kite Realty. But when comparing it to its historical volatility, Inventrust Properties Corp is 1.06 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,018 in Kite Realty Group on August 27, 2024 and sell it today you would earn a total of 722.00 from holding Kite Realty Group or generate 35.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Inventrust Properties Corp vs. Kite Realty Group
Performance |
Timeline |
Inventrust Properties |
Kite Realty Group |
Inventrust Properties and Kite Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inventrust Properties and Kite Realty
The main advantage of trading using opposite Inventrust Properties and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties 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.Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Money Managers Screen money managers from public funds and ETFs managed around the world |